EL SEGUNDO, Calif., Jan. 26 (UPI) -- Bryan Stockton resigned as CEO of toy company Mattel, Inc. on Monday amid reports of slumping sales and an executive shake-up.
Stockton also resigned from the company's board of directors after more than a decade with the company. Christopher Sinclair was named the interim CEO to replace Stockton.
"Mattel is an exceptional company with a great future but the Board believes that it is the right time for new leadership to maximize its potential," Sinclair said. "We are committed to delivering improved growth and financial performance and remain confident in our ability to leverage our unmatched portfolio of brands, global scale and strong balance sheet as we execute on our strategic plan. I look forward to engaging with the entire Mattel community as we work to deepen our connections with children and parents through expanded product innovation and improved retail execution. We will be working during the coming months to revitalize the business and to identify the right leadership for Mattel as it enters its next phase of growth and value creation."
The change-up comes after a disappointing fourth quarter for Mattel, its fifth straight.
A preliminary report indicates $1.99 billion in sales, down 6 percent compared to $2.11 billion in 2013. Worldwide net sales for the year were down 7 percent from $6.48 billion to $6.02 billion.
By Monday afternoon, Mattel's stock had dropped to $26.64 down from a high of $28.13 Monday morning. One year ago, the company's stock was trading at $43.04 per share.
Mattel has steadily declined since January 2014.
Two weeks ago Mattel announced a restructuring at the corporate level.
"As we take bold steps to transform Mattel into a more nimble, creative and consumer-centric company, (President Chief Brands Officer) Richard (Dickson) and (President Commercial Officer) Tim (Kilpin) will play a critical role in ensuring that our global brands and commercial teams are in lockstep, as we focus on bringing the most on-trend and in demand products to market," Stockton said at the time.
In 2014, Mattel lost its spot as the biggest toy company in the world by revenue and profit. It was unseated by Lego, which saw an 11 percent boost in revenue in the first half of the year thanks in part to the success of The Lego Movie.
Mattel might be trying to cash in on the big-screen success of Lego with a series of live-action Barbie movies announced by Sony Pictures Entertainment in April. Production was supposed to begin on a Barbie movie toward the end of 2014.