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Barington Capital Urges Mattel to Accelerate Shareholder Value

Barington Capital Group L.P., an activist investor and shareholder of Mattel, Inc. (“Mattel”), recently sent a letter to Ynon Kreiz, the Executive Chairman & CEO of Mattel, advocating for immediate actions to create long-term value for the Company’s shareholders.

Despite Mattel’s strong brands and improved performance, its share price has declined by 13.2% over the last two years, significantly underperforming the S&P 500. Barington emphasizes that during Mr. Kreiz’s tenure as CEO of Mattel, the company’s shares have only increased at an average annual rate of 4.6%, compared to the average annual rates of 11.2% for the S&P 500 index and 14.4% for the Nasdaq Composite.

To create value for shareholders, Barington suggests the following actions:
1. Pursue strategic alternatives for Fisher-Price and American Girl;
2. Cease excessive stock-based compensation; and
3. Announce a $2 billion share repurchase authorization, starting with an accelerated share repurchase program.

Barington also calls for Mattel to separate the roles of the CEO and Chairman, citing sound corporate governance practices.

James Mitarotonda, Chairman of Barington, commented, “We believe that these brands are now detracting from the success at Mattel’s other segments and hurting shareholder value.” He further added that management should use most of the free cash flow to acquire the Company’s shares and recommended the authorization of $2 billion in share repurchases.

The complete letter from Barington to Mattel’s CEO and Chairman can be found at the following link: https://www.prnewswire.com/news-releases/barington-capital-calls-for-steps-to-accelerate-shareholder-value-creation-at-mattel-302051444.html.

About Barington Capital Group L.P.
Barington Capital Group L.P. is a fundamental, value-oriented activist investment fund founded in 2000. The fund focuses on investing in undervalued publicly traded companies with the potential for significant appreciation in value through substantive improvements to their operations, corporate strategy, capital allocation, and corporate governance. The investment team, advisors, and network of industry experts at Barington utilize their extensive experience to assist companies in implementing initiatives to enhance long-term shareholder value.

The data in the letter from Barington is based on research from S&P Capital IQ as of January 30, 2024.

Source: Barington Capital Group L.P.

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