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Mattel CEO: We Are More Than Just A Toy Company

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Mattel CEO: We Are More Than Just A Toy Company

Mattel Inc (NASDAQ: MAT) needs to be known as more than just a toy maker and the ultimate success of the company depends on successful expansions into new ventures, company CEO Ynon Kreiz, told CNBC's Jim Cramer on Wednesday.

What Mattel Is Doing Beyond Toys

Mattel's core product is obviously toys, but the company needs to expand into film, television, live events, games, music and more, Kreiz said during the "Mad Money" interview. Kreiz brings unique expertise to this field, having previously served as CEO of Maker Studios, a maker of short-form videos on YouTube which was bought out by Walt Disney Co (NYSE: DIS) in 2014.

Mattel is working on a Barbie movie that will be released next year starring Margot Robbie. Tom Hanks will play the role of Major Matt Mason in a live-action movie as well. In total, the company has eight movie projects in the timeline.

By bringing toys to the big screen, Mattel hopes to leverage its global brands that "have so resonance and appeal" to take advantage of a "tremendous opportunity," the CEO said.

Why It's Important For Mattel

The Barbie brand has seen recent momentum highlighted by eight consecutive quarters of growth -- seven of which have been double digit, Kreiz said. The success was a direct result on making Barbie "part of pop culture" that is also contemporary with today's demand. New models of Barbie are "representative of diversity and inclusion" while encouraging girls to "do whatever they want to do."

Mattel is working on a new "capital-light" strategy to reduce its manufacturing footprint. This has already resulted in consolidating one factory in Mexico with "more coming," the CEO said.

Related Links:

Mattel Falls After Former Exec Acknowledges Improper Accounting Practices

Leading The Way? Analysts Not Yet Ready To Buy Mattel Despite Earnings Beat, Stock Surge

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