Like other companies in the toy sector and beyond, Mattel has suffered since Trump’s Liberation Day. In an interview with the Sunday Times, the CEO, Ynon Kreiz, discussed tariffs and, among other things, the success of making the company’s products film stars.
Greta Gerwig, the Hollywood director famed for her Barbiemovie, must have been nervous when she first presented her script to the suited, serious and deadpan boss of Mattel. He could have demanded a rewrite ahead of filming.
Kreiz however, with a glint in his eyes, said: “In that script, Barbie is a fascist. Mattel is the worst in corporate America and I am a chauvinist buffoon. I thought … it’s brilliant.”
“This is what we do. We are very good at managing complexities, volatility and dynamic situations. Over the past several years we have been continuously optimising and diversifying our manufacturing footprint”
Many chief executives might have recoiled at the idea of being satirised on the big screen. But Kreiz shrugs: “We take what we do very seriously. But we don’t take ourselves very seriously.”
At the time of writing, Mattel’s Nasdaq-listed shares are down 24 per cent since April 2. Kreiz played it down and pointed out that under his leadership Mattel had reduced the proportion of its toys made in China from 80 per cent to 40 per cent.
Unfortunately, Trump’s sky-high tariffs targeted not only China but several other countries – including Indonesia and Malaysia – that contain Mattel factories. These countries at least now benefit from the US president’s 90-day pause on import taxes.
Kreiz continued: “This is what we do. We are very good at managing complexities, volatility and dynamic situations. Over the past several years we have been continuously optimising and diversifying our manufacturing footprint. It is a competitive advantage for Mattel. We are a very resilient company with the best people on the ground to help manage through this uncertainty.”
If tariffs do hit Mattel’s manufacturing business as badly as investors evidently fear, Kreiz might at least be able to claim some vindication for his wider business plan. Since taking the top job seven years ago, he has sought to establish Mattel as a company that trades not just in tariff-sensitive plastic toys but in intellectual property (IP), as demonstrated by the Barbiefilm.
The film topped global box-office takings in 2023, grossing $1.4 billion. The terms of Mattel’s deal with Warner Bros are not disclosed, but the film boosted the toymaker’s revenues by $125 million in 2023, including through enhanced toy sales.
