1983:$1.24/Share 2011:$26.86
Shortly after World War II, newly-married Ruth and Elliot Handler decided to start a business out of the garage of their Southern California home. Though Mattel is best known as a toy maker, the brand initially produced and sold picture frames. Shortly after opening for business, Handler began making dollhouse furniture with the scraps left over from the picture frames.
The Handlers had little business experience and even less capital, but the demographics of a baby boom, plus a virtually toyless marketplace afforded the couple a unique opportunity to carve out a niche.
Mattel had their first hit toy in 1947 with the “Uke-A-Doodle,” a miniature plastic ukulele that proved to be an immediate success that generated large orders.
Mattel reached several important firsts in 1955. Sales climbed to $5 million; the company introduced another hit, Burp Guns; and the Handlers decided to take a gamble that would change the toy business forever. In what seemed a risky venture, the Handlers agreed to sponsor a 15-minute segment of Walt Disney’s Mickey Mouse Club on the ABC television network. The Handlers signed for 52 weeks at a cost of $500,000, equal to Mattel’s net worth at the time. With television, toys could be marketed directly to children throughout the country.
With the slogan, “You can tell its Mattel, it’s swell,” the Handlers began a marketing revolution in the toy industry that continues to this day.
Mattel’s first Barbie doll was made in 1959, modeled after Ruth Handler’s daughter, Barbara. This doll excited little girls and helped the toy industry boom.
In 1960, Mattel became a publicly owned company. In 1963, it was listed on the New York Stock Exchange. By 1965, sales toped over $100 million and the company joined the Fortune 500 list.
From its humble beginnings in the garage, to its listing on the New York Stock Exchange, Mattel has grown by leaps and bounds. It is now ranked 413 on the list of Fortune 500 companies. In 2008, Mattel reached $6 billion in revenues and reported 4.8 billion in assets.
