Mattel CEO Chris Sinclair is pleased that customer engagement levels have risen in the past quarter, but he knows there is much work to be done to transform the iconic brand.
“From a strategic perspective, we’ve continued to drive our cultural change agenda,” Sinclair said during the company’s second-quarter earnings conference call on July 16, according to Seeking Alpha. “We have also made some solid progress against our six core priorities. Our emphasis continues to be on rebuilding our culture to embrace brand building, creativity, and innovation. “
Sinclair said that the company is starting to see strengthening among some of its core brands, including Hot Wheels, Thomas, Ever After High, American Girl, Barbie, and Fisher-Price.
“We also continue to broaden our innovation and invention pipeline,” Sinclair added. “So on balance as we exit the first half, we’re continuing to move things forward, and to see some real positives. Based on the results today, and our go forward outlook, we do remain on track with our strategic priorities. Having said all of this, I want to assure you that we are not complacent. We recognize that we still have a lot to do to rebuild the business and to successfully navigate through a very competitive second half equally challenging set of economic headwinds. Our core brand and Toy Box is still a work in process. Stabilizing modest or high fully rejuvenating Fisher-Price and Barbie and restoring a vibrant licensing business will all take time.”
Richard Dickson, Mattel’s Chief Operating Officer, said the brand has gained momentum.
“Our new approach to global brand management is beginning to make an impact,” Dickson said. “And yes, we are making progress with Barbie. Our research shows that the brand’s relevance and interest among girls has been improving as a result of more effective marketing and more exciting products. Monster High is a big exciting brand that continues to have great potential and significant challenges. Importantly, the brand concept continues to resonate with girls and we believe we can make it even more on trend and relevant. We’ve been doing a great deal to get brand stabilized and refocused on its strengths.”
Dickson said Mattel has done “extensive” work to restore power and momentum to the Fisher-Price business. In the second quarter, shipping for Fisher-Price baby increased more than 10% in North America and internationally in constant currency. Mattel’s focus in this regard has been on “achievement-oriented, millennial parents”, Dickson noted.
“Overall, we are a much more dynamic and purposeful Mattel than we were only a year ago and the transformation underway in our strategic priorities and our culture, while neither easy nor painless, is beginning to shape a much more creative, aligned, and nimble organization. We are confident we will succeed because there is a renewed passion to lead among our talented people and Mattel is beginning to feel more like the global leader with the heart of a challenger.”