Mattel CEO is out after just over a year on the job
Posted April 19, 2018 4:16 p.m. EDT
NEW YORK (CNNMoney) — Mattel CEO Margo Georgiadis, who took the top spot at the struggling toymaker a little more than a year ago, is already planning to leave the company.
Georgiadis will be replaced by Ynon Kreiz, a Mattel director. Kreiz will also soon replace former Mattel CEO Christopher Sinclair as the company's chairman.
Kreiz will take over on April 26, the day Mattel will report its latest quarterly results. Mattel said Georgiadis is leaving for another job in the tech industry and that she will stay with the company in an advisory role until May 10. Georgiadis came to Mattel from Google.
Shares of Mattel fell 3% in regular trading Thursday but rallied after hours. That could be a possible sign that investors believe Kreiz may be amenable to a possible merger with Mattel rival Hasbro.
Hasbro and Mattel are both struggling as kids play more games on smartphones and tablets and with other high-tech toys.
The demise of Toys "R" Us has also hurt sales for both companies, as has the increased clout of Amazon, Walmart and Target -- which all focus on low prices -- in the toy retail industry.
But Mattel is hurting even more than Hasbro. Its stock has lost nearly half its value in the past year as sales of Barbie, Hot Wheels. American Girl and Fisher-Price toys have underwhelmed.
Hasbro, on the other hand, has only fallen about 12% in the past year. It is still benefiting from the fact that it now has most of the major toy licenses tied to Disney franchises such as the Princess line of characters, Frozen, Star Wars and Marvel comics.