The CEO of Mattel steps down as the company warned of a fifth straight decline in quarterly sales. Shartia Brantley reports.
New year, new C-E-O for Mattel. Bryan Stockton resigned after three years as CEO. This announcement surprised analysts like Needham & Company's Sean McGowan: SOUNDBITE: SEAN MCGOWAN, ANALYST, NEEDHAM & COMPANY (ENGLISH) SAYING: "I had heard some rumblings that certain elements on the board were dissatisfied. And certainly look at the performance that something was lacking, but I thought he'd at least have the rest of 2015 to play out because it takes a long time for a CEO to really have a big impact on a company's product lines." Mattel, which is home to the Barbie, American Girl and Fisher-Price brands, brought in board member Christopher Sinclair to serve as chairman and interim CEO. The company also warned of a fifth straight fall in quarterly sales. Barbie sales have fallen for nearly three years and its American Girl and Monster High dolls have not been able to offset the decline. Besides finding a new CEO, Sinclair must provide a short-term plan to boost Mattel's bottom line. SOUNDBITE: SEAN MCGOWAN, ANALYST, NEEDHAM & COMPANY (ENGLISH) SAYING: "Communicate the message of what direction the company needs to go and in the meantime what costs need to be looked at. What are going to be the strategic priorities of the company in this interim period." McGowan says Mattel might cast a wide net beyond the toy industry in its search for a replacement, and its brand recognition may speed up the process. SOUNDBITE: SEAN MCGOWAN, ANALYST, NEEDHAM & COMPANY (ENGLISH) SAYING: "I think we're talking months, not quarters, but certainly more than one month. I would be surprised if the middle of the year came and they didn't have a full-time candidate." Mattel is expected to report earnings on Friday.