California-based toy manufacturing company Mattel Inc. had its fair share of downfall for the last couple of years as the company is struggling to increase its sales. Due to its disappointing number of sales during the Holiday shopping season, Mattel's Chairman and CEO Bryan Stockton vacated his position on Monday, Mashable reported.
Various reports of Stockton's resignation surrounded the World Wide Web though, according to The Week, it was not just a mere resignation, Mattel indeed fired Stockton as its CEO, after three years of service, due to collapsing profits.
The company, which also makes American Girl dolls, WWE toys and Fisher-Price toys, said that they need to do a big move and a change of leadership to revive what was lost and gather kids' attention. It is said that children already lost their interest and fall out of love with Ken and Barbie, especially when Frozen dominated the market, that's why the toy company is eager to address the rapid preference change of children.
Meanwhile, according to some reports, the Matchbox Toys and Barbie Dolls maker is said to have not met analysts' expectation as Mattel was only able to turnover 1.99 billion in its fourth quarter last year, in which, a significant downfall of 6 percent compared to the previous year's same period. On the other hand, Mattel's full year turnover went down to a slump - 7 percent to 6 billion - which may only equate to a 498.9 million net profit.
According to an announcement made by Mattel, the El Segundo, California company named executive board member Christopher A. Sinclair, 64, as its new Chairman and interim CEO, until they can find a replacement for Stockton.
Along with Stockton's resignation on Monday, Mattel's shares went down by 3 percent to $27.17 and as of this writing, the company's shares collapse to $26.51.