Mattel CEO: Not Leaving Yet

Mattel Inc. Chief Executive Christopher Sinclair said Thursday he won't hand over the reins until the toymaker's turnaround is solidly established and the company has the right leadership in place.

"When we've got confidence that we've got a stable enterprise, and it's working on all cylinders, and we've got a deep foundation of management and the right culture, then that's the time when I will feel comfortable moving on to my dotage," Mr. Sinclair told financial analysts, "and we will start in earnest to think about the long-term leadership of the company."

The Wall Street Journal reported Wednesday that Mattel had retained search firm Spencer Stuart to help identify the company's next CEO, according to people familiar with the matter. The succession planning would smooth the next handoff after Mattel had to scramble the last time it replaced its CEO, who was fired in 2015 after a long sales slump.

Mr. Sinclair, 66 years old, along with his top lieutenant, President and Operating Chief Richard Dickson, has initiated a turnaround at Mattel since taking over 18 months ago. Mattel has reversed sales declines at top brands like Barbie and Fisher-Price, patched rocky relationships with retailers and deepened a management bench with new hires that oversee branding strategies and development of movies and shows to help sell toys.

The company has also overhauled a corporate culture that was bogged down with bureaucracy that has allowed designers and marketers to take more risks, with a new division called Toy Box created as an entrepreneurial arm. "Very little of this organization looks and acts the way it did just two years ago," Mr. Sinclair said Thursday.

The company expects the momentum to continue next year. It's projecting sales to rise at a mid- to high-single digit percentage rate, helped by the release of Pixar's "Cars 3" movie. The company also plans to refresh marketing campaigns on Barbie and come up with a new marketing plan for Hot Wheels. It's also winning over retailers by creating more engaging displays in stores, which are also helping sales.

Still, Mr. Sinclair suggested that the company isn't where it should be for him to move on. "I'm confident that when we're in that position, we will make the right decision," he said.

Share of Mattel slipped 85 cents, or 2.8%, to $30.05 on Thursday.

Write to Paul Ziobro at [e-mail]

(END) Dow Jones Newswires

November 03, 2016 17:35 ET (21:35 GMT)

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