Executives for the toy giant hosted its annual analyst meeting ahead of the festivites, telling investors its focus for 2019 is to find more "efficiences" in profitability, and in 2020 it expects to see those benefits pay off.
Ynon Kreiz, chairman and CEO of Mattel, detailed his strategy to "unlock growth potential" to transform the company into a high-performing toy company.
Kreiz also said they expect to exceed an overall savings target of $650 million.
The company also forecast its fiscal year EBITDA of $350 milion to $400 million, which is well below the consensus of $551.6 million. It's also expecting gross margin in the low 40s and sales growth to be flat year-over-year.
On the heels of its gloomy outlook, Mattel also revealed Friday that it has partnered with MGM for a live-action film based on its American Girl brand. This follows other movie announcements of late, including a Hot Wheels movie and a Barbie film starring Oscar-nominee Margot Robbit.
The good news is that Mattel said its Barbie brand has seen five consecutive quarters of year-over-year growth.