The Masters of the Universe revival is part of a larger expansion strategy under Mattel’s chief executive, Ynon Kreiz, to dust off aging franchises. “We have a treasure trove of brands, some that were shelved for whatever reason,” said Richard Dickson, the president and chief operating officer of Mattel. Brands that are lined up for expansion include the Magic 8 Ball, the Major Matt Mason action figure and the card game Uno.
Expanding its intellectual properties could make Mattel more profitable at a time when the toy industry is booming. After tumbling 4 percent in 2019, U.S. toy sales jumped 16 percent to $25.1 billion last year, according to the NPD Group, a research firm. Mattel reported a 40 percent increase in net sales in its most recent quarter compared with the same period in 2020.
“Ynon Kreiz changed a lot about the business,” said Gerrick Johnson, an equity research analyst for BMO Capital Markets. “He looked at the profitability of the licenses.” Pulling a brand like Masters of the Universe out of the vault is a smart strategy, he said, because Mattel can turn around and sell licenses for a range of products, like bedsheets and backpacks.
Beyond toys and the series — and a long-gestating movie project — Mattel is lining up partnerships in publishing and in softgoods, which include clothing and bedding, said Mr. Dickson, who declined to provide additional details.