It has worked to diversify its toy offerings, but doll sales still account for 40% of Mattel’s business.

?Net income was $149.9 million, or 44 cents per share, down 59% from $369.2 million, or $1.07 per share, a year ago. Total sales fell 6% to $1.99 billion.

Analysts polled by Thomson Reuters estimated per-share earnings of 96 cents and revenue of $2.14 billion.

With Stockton out, Mattel is looking for a new candidate for the top job. A change in leadership was necessary ”to change the trajectory of the business and maximize our potential going forward, and certainly to take advantage of our many assets,” said Sinclair on a conference call with investors.

Mattel said it won’t offer any outlook for the year amid the transition. Shares of Mattel are down 33.7% over the last 12 months and slid 1.5% to $26.50 in pre-market trading.

Eoin Treacy's view

CEOs who have overseen massive declines in the shares of the companies they are responsible for are increasingly being fired by their boards. Over the last year there have been a number of instances where this has occurred among the Autonomies, not least Tesco which has since staged a rebound. Standard Chartered’s decision to remove the CEO today was also greeted with enthusiasm by investors and Mattel’s move on Monday was equally well received. 

Mattel (Est P/E 17.21, DY 5.8%) posted a large upward dynamic from the $25 area in January and fell back to retest that level over the last three weeks. It continues to firm from that region and potential for a reversionary rally has improved.