Mattel Inc. Chief Executive Officer Ynon Kreiz is confident the toymaker will achieve a higher market value if it continues on its path as an independent company.
His comments follow a report Monday that said Mattel has received a takeover approach from L Catterton, the private equity firm backed by LVMH Moet Hennessy.
“We don’t comment on speculation as a matter of long-standing policy, but what I can say is that we’re very confident in our strategy,” Kreiz said in an interview Tuesday. “We’re here to create value for our shareholders, and what is clear is that the stock doesn’t reflect that value, especially in terms of the future potential of our business.”
After markets closed, Mattel reported second-quarter revenue declined to $1.08 billion, missing the $1.1 billion average of estimates compiled by Bloomberg. Earnings rose to 19 cents a share, excluding some items, the company said in a statement, beating the average estimate of 17 cents.
The El Segundo, California-based company also reiterated its full-year guidance, forecasting flat sales and higher profit.
Kreiz expects the share price to climb as Mattel returns to sales growth in 2025 and evolves its toy brands into film and television franchises, following the example set by last year’s blockbuster Barbie movie.
Sales in the second quarter were held back by a 6% decline in global billings for the company’s flagship dolls segment, which includes Barbie and the Princess line licensed from Walt Disney Co.
Kreiz expects billings to bounce back in the second half of the year, which will benefit from new Barbie and Fisher-Price products, as well as growth from Hot Wheels miniature cars.
Kreiz, who’s been CEO since 2018, led a turnaround of Mattel that’s delivered higher cash flow and returned the company to investment-grade status, while forging closer ties to the entertainment industry.
Under his tenure, annual earnings before interest, tax, depreciation and amortization have soared. But toy company stocks are trading below the recent peaks they reached during the Covid-19 pandemic, when families were trapped at home and parents loaded on products to occupy their children.
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