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Mattel, Inc. (MAT) is a global leader in the toy and family entertainment industry, known for its iconic brand portfolio and innovative products. The company creates toys, games, and experiences that inspire and entertain children, while also expanding its intellectual property into entertainment, digital, and live experiences. Mattel's offerings include dolls, vehicles, infant and preschool toys, action figures, games, and building sets, catering to a wide range of age groups and interests.
- North America Segment - Sells toys and consumer products across categories like Dolls (e.g., Barbie, Disney Princess), Infant/Toddler/Preschool (e.g., Fisher-Price), Vehicles (e.g., Hot Wheels, Matchbox), and Action Figures/Games in the United States and Canada.
- International Segment - Markets and sells toys and products similar to the North America segment, tailored for regions such as Europe, Latin America, and Asia.
- Dolls
- Barbie - Empowers children with a diverse range of dolls and accessories since 1959.
- American Girl - Offers historical and contemporary 18" dolls, books, and accessories.
- Disney Princess and Disney Frozen - Features characters and stories from Disney's popular franchises.
- Monster High - Focuses on unique, fashion-forward dolls with a spooky theme.
- Polly Pocket - Provides compact, portable playsets and dolls.
- Infant, Toddler, and Preschool
- Fisher-Price - Develops enriching toys for young children, including Little People.
- Thomas & Friends - Offers train-themed toys and content that teach life lessons.
- Power Wheels - Produces ride-on vehicles for toddlers and preschoolers.
- Vehicles
- Hot Wheels - Known for high-performance toy cars and tracks, appealing to kids and collectors.
- Matchbox - Features realistic, adventure-themed vehicles.
- Cars (Disney Pixar) - Brings characters from the Cars movie franchise to life through toys.
- Action Figures, Building Sets, Games, and Other
- Masters of the Universe - Includes action figures and playsets inspired by the fantasy franchise.
- MEGA - Offers building sets for creative play.
- UNO - A globally popular card game.
- Lightyear (Disney Pixar) - Features toys based on the Buzz Lightyear character.
- Jurassic World (NBCUniversal) - Provides dinosaur-themed action figures and playsets.
- WWE - Includes wrestling action figures and accessories.
- Star Wars (Disney's Lucasfilm) - Features toys and collectibles from the Star Wars universe.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ynon Kreiz ExecutiveBoard | Chairman and Chief Executive Officer | Board Member at Warner Music Group Corp.; Member of Academy of Motion Picture Arts & Sciences’ Executive Branch; Board of Advisors at UCLA Anderson School of Management | CEO since 2018, leading Mattel's transformation into an IP-driven, high-performing toy company. Former CEO of Maker Studios and Endemol Group. | View Report → |
Anthony DiSilvestro Executive | Chief Financial Officer | None | CFO since 2020, instrumental in achieving investment-grade rating and driving $400M in cost savings. Former CFO at Campbell Soup Company. | |
Jonathan Anschell Executive | EVP, Chief Legal Officer, and Secretary | None | Joined Mattel in 2021. Former EVP and General Counsel at ViacomCBS Media Networks and CBS Corporation. | |
Roberto Isaias Executive | EVP and Chief Supply Chain Officer | None | Joined Mattel in 2001. Held multiple leadership roles in Latin America and supply chain management. | |
Steve Totzke Executive | President and Chief Commercial Officer | None | Joined Mattel in 2002, became President and CCO in 2022. Has held multiple leadership roles in sales and marketing across regions. | |
Adriana Cisneros Board | Director | CEO of Cisneros Group; Director at AST SpaceMobile, La Wawa, The Electric Factory, Americas Society/Council of the Americas, and Citibank Private Bank Latin American Advisory Board; Trustee at The Paley Center for Media | Director since 2018. Brings expertise in media, real estate, and digital strategy. CEO of Cisneros Group. | |
Dawn Ostroff Board | Director | Director at Paramount Global; Member of NYU Faculty of Arts and Science Board of Overseers; Trustee at The Paley Center for Media | Director since 2024. Former Chief Content & Advertising Business Officer at Spotify. Brings expertise in media, entertainment, and advertising. | |
Diana Ferguson Board | Director | Director at Gartner, Inc. and Sally Beauty Holdings, Inc.; Trustee at Groton School; Board Member at Chicago Botanic Gardens | Director since 2020. Chair of Mattel's Audit Committee. Extensive experience in finance, strategy, and corporate governance. | |
Dr. Judy Olian Board | Director | President of Quinnipiac University; Director at Ares Management Corporation and United Therapeutics Corp.; Advisory Board Member at Catalyst Inc.; Member of AdvanceCT and CT Governor’s Workforce Commission | Director since 2018. Brings expertise in leadership, human resources, and management strategy. | |
Julius Genachowski Board | Director | Chairman of Sonos, Inc.; Director at Mastercard Incorporated; Senior Advisor at The Carlyle Group | Director since 2024. Former FCC Chairman. Brings expertise in technology, media, and corporate governance. | |
Prof. Noreena Hertz Board | Director | Director at Warner Music Group and Workhuman; Visiting Professor at University College London; Member of Catalyst Inc. | Director since 2023. Expert in ESG, globalization, and decision-making. Author of several best-selling books. | |
Roger Lynch Board | Independent Lead Director | CEO of Condé Nast; Director at News Media Alliance, Partnership for New York City, USC Dornsife School of Letters, Arts and Sciences, and Tuck School of Business at Dartmouth | Director since 2018. Elected Independent Lead Director in 2024. Extensive experience in media and technology sectors. | |
Soren Laursen Board | Director | Operating Partner at Credo Partners AS; Board Member at Koble ApS, The Army Painter, Postevand ApS, and Varier Furniture A/S Oslo | Director since 2018. Former interim executive at Mattel. Brings expertise in brand development and global toy industry. |
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Despite the adjusted tax rate projection decreasing significantly from previous estimates, you maintained your adjusted EBITDA and EPS guidance unchanged; can you clarify what offsets are compensating for the lower tax rate, and why EPS guidance hasn't increased accordingly?
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You mentioned that SG&A expenses as a percentage of sales are expected to increase slightly due to investments in digital gaming and information technology; given the modest decline in net sales and the challenging market environment, can you elaborate on the expected returns from these investments and the timeline for them to contribute positively to your profitability?
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With capital expenditures forecasted to rise due to the purchase of a new global design center, how will this impact your free cash flow and capital allocation priorities, particularly regarding share repurchases and debt reduction?
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Given that the toy industry is expected to decline modestly in 2024 and recognizing potential macroeconomic headwinds, what gives you confidence in expecting growth in the fourth quarter and a good holiday season, and what are the risks that could prevent you from achieving this outlook?
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Considering the pressure on certain consumer cohorts seeking value products and potential price mix headwinds, how are you balancing the need to offer a range of price points with maintaining your gross margins, and what steps are you taking to mitigate any potential margin erosion?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Walmart | Major retail partner | All | Revenue in 2024: $1.17B (~21.8% of total) |
Target | Major retail partner | North America | Revenue in 2024: $0.68B (~12.6% of total) |
Amazon | Major e-commerce partner | All | Revenue in 2024: $0.51B (~9.5% of total) |
Recent press releases and 8-K filings for MAT.
- Major financial transformation: Under strong leadership, Mattel shifted from an adjusted EBITDA of $120M in 2017 to over $1B in 2024, improved gross margins from the 30s to the low 50s, and turned free cash flow from -325M to +600M, while substantially reducing its leverage from 25x to 2.2x.
- Diversified brand and IP strategy: The company is shifting from a traditional toy manufacturer to an IP powerhouse by growing brands like Hot Wheels, Monster High, Fisher-Price, and American Girl, and leveraging key licensing deals such as the new DC partnership and investments in digital mobile gaming.
- Strategic capital allocation: With strong free cash flow, Mattel is aggressively repurchasing shares (with $200M bought in 2023, $400M in 2024, and a target of $600M in 2025) and remains open to M&A opportunities to accelerate growth.
- Cost optimization initiatives: The company launched its "Optimizing for Profitable Growth" program targeting $200M in cost savings by 2026, focusing on reducing COGS by 70% and SG&A by 30% through manufacturing rationalization and supply chain efficiencies.