Mattel Stock (NASDAQ:MAT), Trade Ideas

Mattel

Mattel markets toy products that are sold to its wholesale customers and direct to retail consumers. The company offers products for children and families, including toys for infants and preschoolers, girls and boys, youth electronics, hand-held and other games, puzzles, educational toys, media-driven products, and plush and fashion-related toys. Mattel's owned portfolio includes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl. In addition, it currently manufactures toy products for its segments both internally and externally (through manufacturing partners). More than 50% of its net sales are generated from North America, with the remainder stemming from international markets.

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Analyst Linda Bolton Weiser reaffirms a Buy rating on Mattel with a target price of $26.00, citing Fisher-Price&#39;s $800 million entry into the wood toy segment. The move, targeting millennial parents, promises growth opportunities and margin expansion for Mattel with its trendy design and sustainable materials, bolstering its position in the infant and preschool market.

Mattel&#39;s Entertainment Push: Analyst Eyes Booming Toy Sales With Disney&#39;s Moana 2 And Frozen 3 In The Pipeline

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Looking at the betting favorites for key award categories for the Academy Awards. Can Barbie and Oppenheimer help bettors profit?

Betting On The Oscars: &#39;Oppenheimer,&#39; &#39;Barbie&#39; Success Could Mean Big Payouts For Bettors

Toymaker Mattel acknowledged that it encountered delays in submitting its 2023 annual report due to identified deficiencies. According to the company, the deficiencies related to information technology represented a material weakness in its internal control over financial reporting.

Toy Maker Mattel Hit With Reporting Roadblocks: IT Deficiencies Delay 2023 Annual Report

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Jefferies analyst Andrew Uerkwitz maintains Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) with a Hold and raises the price target from $19 to $20.

Jefferies Maintains Hold on Mattel, Raises Price Target to $20

DA Davidson analyst Linda Bolton Weiser maintains Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) with a Buy and maintains $26 price target.

DA Davidson Maintains Buy on Mattel, Maintains $26 Price Target

D.A. Davidson&nbsp;analyst Linda Bolton Weiser reiterated a Buy rating on the shares of&nbsp;Mattel Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MAT/analyst-ratings" rel="noreferrer noopener">with a price target of $26.00.</a>
Mattel&#8217;s announcement of Fisher-Price&#8217;s entry into the wood toy segment is a $800 million market within the infant, toddler, and preschool category, said the analyst.
Fisher-Price&nbsp;Wood sets itself apart with on-trend design and accessible price points, appealing to millennial parents who seek products with an elevated aesthetic and sustainable materials, noted the analyst.
According to the analyst, the expansion into the wood segment is expected to be margin-accretive and provide growth opportunities across various product categories.
Other launches in the preschool segment include Thomas &amp; Friends foray into a new segment called Talking Thomas and a new Barney preschool animated series planned to go on air in 2024 fall.
In 2024, MAT is launching Mini Barbie, a new product line that taps into the miniature collectibles trend with an estimated market of $1.6 billion globally.
Hot Wheels posted its sixth consecutive record year in 2023, and is expected to grow in 2024, opined the analyst.
Mattel Television Studios has 13 series and specials currently in production and more than 35 series and specials in development, said the analyst.
Upcoming film releases that are expected to boost toy sales include&nbsp;Walt Disney Company&#8217;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) Moana 2 in November 2024 and Frozen 3, which is expected to be released within the next two years.
Price Action: MAT shares are trading higher by 0.87% at $19.72 on the last check Friday.
Photo by 8th.creator on Shutterstock

Mattel's Entertainment Push: Analyst Eyes Booming Toy Sales With Disney's Moana 2 And Frozen 3 In The Pipeline

In the latest quarter, 7 analysts provided ratings for Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>), showcasing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $21.71, along with a high estimate of $26.00 and a low estimate of $19.00. This current average has decreased by 6.94% from the previous average price target of $23.33. 
<img src="https://www.benzinga.com/files/images/story/2024/1709920872_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Mattel. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Alexander Perry</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$25.00</td>
<td>$22.00</td>
</tr>
<tr>
<td>Linda Bolton Weiser</td>
<td>DA Davidson</td>
<td>Raises</td>
<td>Buy</td>
<td>$26.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Christopher Horvers</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$20.00</td>
<td>$19.00</td>
</tr>
<tr>
<td>Christopher Horvers</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$19.00</td>
<td>$24.00</td>
</tr>
<tr>
<td>Drew Crum</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Buy</td>
<td>$23.00</td>
<td>$26.00</td>
</tr>
<tr>
<td>Megan Alexander</td>
<td>Morgan Stanley</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$19.00</td>
<td>-</td>
</tr>
<tr>
<td>Eric Handler</td>
<td>Roth MKM</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$20.00</td>
<td>$24.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Mattel. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Mattel compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Mattel's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Mattel's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/MAT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Mattel analyst ratings.</a>
<h2>All You Need to Know About Mattel</h2>
Mattel markets toy products that are sold to its wholesale customers and direct to retail consumers. The company offers products for children and families, including toys for infants and preschoolers, girls and boys, youth electronics, hand-held and other games, puzzles, educational toys, media-driven products, and plush and fashion-related toys. Mattel's owned portfolio includes Barbie, Hot Wheels, Fisher-Price, Thomas &amp; Friends, and American Girl. In addition, it currently manufactures toy products for its segments both internally and externally (through manufacturing partners). More than 50% of its net sales are generated from North America, with the remainder stemming from international markets.
<h3>Financial Insights: Mattel</h3>
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Challenges: Mattel's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -15.54%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Mattel's net margin excels beyond industry benchmarks, reaching 9.09%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Mattel's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.04%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Mattel's ROA stands out, surpassing industry averages. With an impressive ROA of 2.32%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Mattel's debt-to-equity ratio surpasses industry norms, standing at 1.2. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What Analysts Are Saying About Mattel Stock

B of A Securities analyst Alexander Perry maintains Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) with a Buy and raises the price target from $22 to $25.

B of A Securities Maintains Buy on Mattel, Raises Price Target to $25

Guidance

Mattel CEO Says Targeting $200M Of Annualized Savings By 2026 And Under New Cost Savings Program

Mattel CEO Says Fisher-Price Wood Set For North America Exclusive Launch At Walmart This Spring, With Global Launch Beginning In H2 2024; Taking Active Steps And Making Strategic Changes To Fisher-price And Infant, Toddler And Preschool Category As A Whole

Mattel CEO Says We'll Now Consider Strategic Investments To Support Our Entertainment Strategy And Drive Organic Growth

Mattel CEO Says Beyond 2024, Believe Toy Trends Will Further Improve And The Industry Will Return To Growth; We Are Seeing More Movies Headed To Theaters, A Positive For The Industry

Mattel CEO Says Expect Toy Industry To Decline In 2024, Although At A Lesser Rate Than 2023

Betting on major league sports has grown over the years, with more states legalizing <a href="https://www.benzinga.com/general/sports-betting">online sports betting.</a>
Sports bettors have also been drawn to novel betting avenues, including<a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36586451/cant-bet-on-trump-or-biden-to-win-2024-election-in-us-this-crypto-market-could-have-you-co"> on political outcomes </a>through cryptocurrency prediction markets.
Bettors now have the option to wager on award show outcomes as well, like the upcoming 96th Academy Awards.
What Happened: Two of the top grossing 2023 movies <a href="https://www.benzinga.com/general/entertainment/23/07/33351922/barbie-oppenheimer-set-box-office-records-its-the-first-top-10-weekend-missing-this-key-ing">were released on the same day, </a> creating a pop culture phenomenon. "Oppenheimer" and "Barbie" have also been among the most nominated movies on this year's movie awards circuit.
The two movies will face off in several categories, including for the iconic Best Picture award.
"Oppenheimer" <a href="https://www.benzinga.com/general/entertainment/24/01/36742998/academy-award-nominations-disney-oppenheimer-dominate-list-while-barbie-gets-smaller-billin">leads the way</a> with 13 Academy Award nominations. The movie from Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) and grossed $326.1 million domestically and $957.7 million globally. The movie was recently added to the Peacock streaming platform owned by Comcast.
"Poor Things" from The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) owned Searchlight brand has 11 nominations.
"Killers of the Flower Moon" from Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) has 10 nominations.
"Barbie," which comes from Warner Bros. Discovery (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) and is based on the Mattel Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) brand has eight nominations. The movie grossed over $1.44 billion worldwide.
Among the most nominated companies for the Academy Awards are Disney with 20 and Comcast and streaming company Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) tied for second at 18 nominees each.
The 96th Academy Awards air on Disney-owned ABC at 7 pm. ET on March 10 and will see many of the key categories televised. Bettors at many major sportsbooks can place bets on some of the key awards.
Related Link: <a href="https://www.benzinga.com/general/sports-betting/24/02/37409741/sports-betting-to-pay-off-student-loans-new-trend-takes-over-tiktok">Sports Betting To Pay Off Student Loans? New Trend Takes Over TikTok</a>
 Betting Odds: Here's a look at betting odds for some of the key award races from sports betting platform DraftKings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>) and which movies and people received awards at the Golden Globes and Screen Actors Guild Awards, which sometimes can predict the winners of the Academy Awards.
Best Picture
<ul>
<li>"American Fiction": +8000</li>
<li>"Anatomy of a Fall": +4000</li>
<li>"Barbie": +3500</li>
<li>"The Holdovers": +2500</li>
<li>"Killers of the Flower Moon": +6500</li>
<li>"Maestro": +15000</li>
<li>"Oppenheimer": -5000</li>
<li>"Past Lives": +10000</li>
<li>"Poor Things": +2000</li>
<li>"The Zone of Interest": +2500</li>
</ul>
"Oppenheimer" is a huge betting favorite at odds of -5000, which means a $1 bet would pay out a profit of only two cents if correct. The movie won the cast award for the Screen Actors Guild and Best Picture Drama <a href="https://www.benzinga.com/general/entertainment/24/01/36538524/taylor-swift-loses-golden-globe-to-barbie-movie-oppenheimer-succession-lead-way-in-award-wi">at the Golden Globes</a>. "Poor Things" won the Best Picture Comedy or Musical at the Golden Globes.
Christopher Nolan is also the heavy favorite to win Best Director for "Oppenheimer" with odds of -5000. Nolan won the Best Director Golden Globe Award.
Oppenheimer star Cillian Murphy is also a large betting favorite to win Best Actor with odds of -1000, which means a $1 bet pays out a profit of 10 cents if correct. Ranking second at odds of +500 is Paul Giamatti for "The Holdovers." Murphy and Giamatti each won Golden Globes, while it was Murphy winning the Screen Actors Guild Award.
Robert Downey Jr. is also a heavy betting favorite for Best Supporting Actor for his role in "Oppenheimer" at odds of -3500, paying a two cent profit on a $1 bet. DaVine Joy Randolph is the betting favorite at odds of -3000 for Best Supporting Actress for her role in "The Holdovers." Both Downey Jr. and Randolph won Golden Globes and Screen Actors Guild awards.
One key betting market could be the race for Best Actress, which sees Lily Gladstone ("Killers of the Flower Moon") and Emma Stone ("Poor Things") in the closest race of the major awards with odds of -225 and +135 respectively. Gladstone and Stone each won Golden Globes, while it was Gladstone who took home the Screen Actors Guild award and could have the inside track. A $1 bet on Gladstone pays out a profit of 44 cents if she wins.
"Anatomy of a Fall" won the Best Screenplay at the Golden Globes and is the betting favorite at -280.
While &#8220;Barbie&#8221; may not win any of the big awards, it is the betting favorite for Best Original Song. "What Was I Made For?" and "I'm Just Ken" rank as the top two betting odds for the category at -750 and +450, giving "Barbie" two frontrunners for the award out of five nominees.
Read Next: <a href="https://www.benzinga.com/general/entertainment/23/08/33867994/barbie-movie-magic-heres-how-much-margot-robbie-made-for-her-starring-role-and-producing-hi" target="_blank" rel="noreferrer noopener">Barbie Movie Magic: Here's How Much Margot Robbie Made For Her Starring Role And Producing Hit Film</a>
Photo: Shutterstock

Betting On The Oscars: 'Oppenheimer,' 'Barbie' Success Could Mean Big Payouts For Bettors

Toymaker&nbsp;Mattel&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>), acknowledged that it encountered delays in submitting its 2023 annual&nbsp;<a target="_blank" href="https://www.sec.gov/Archives/edgar/data/63276/000162828024008014/fy2023form12b-25.htm" rel="noreferrer noopener">report due to identified deficiencies</a>.
According to the company, the deficiencies related to information technology represented a material weakness in its internal control over financial reporting.
However, Mattel reassured that the deficiencies are not anticipated to materially impact the financial disclosures.
Mattel affirmed its commitment to filing the annual report by March 15, emphasizing ongoing efforts to address the situation.
Last month, Mattel disclosed its financial outcomes for the fourth quarter and the entirety of 2023, which transpired on February 7, reported&nbsp;<a target="_blank" href="https://www.reuters.com/business/retail-consumer/mattel-delays-filing-2023-annual-report-2024-02-29/" rel="noreferrer noopener">Reuters</a>.
Earlier in February, the company faced pressure from activist investor Barington Capital, advocating for strategic evaluations concerning the Fisher-Price and American Girl brands, and advocating for a&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/02/36914386/activist-investor-wants-barbie-maker-mattel-to-part-ways-with-fisher-price-american-girl-seeks-org" rel="noreferrer noopener">division between the roles of CEO and chairman</a>.
With a market capitalization of approximately $6.5 billion, Mattel has been exploring ways to leverage its intellectual property through ventures such as films, including upcoming projects featuring Hot Wheels, Uno, and Barney.
Price Action: MAT shares closed higher by 0.20% at $19.70 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by 8th.creator on Shutterstock

<a href="https://www.latimes.com/business/story/2024-02-28/mattel-stock-barbie-activist-investor-barington">https://www.latimes.com/business/story/2024-02-28/mattel-stock-barbie-activist-investor-barington</a>
If "Barbie" is awarded best picture at next month's Academy Awards, it would only crown what has been an unprecedented moment for the world's No. 1 selling doll.
The glossier half of the "Barbenheimer" sensation not only brought in nearly $1.5 billion at the global box office, but also renewed the cachet of a toy old enough to be Medicare eligible next month — earning Mattel some $150 million, including doll sales and other revenue streams last year.
It all seemed to validate the toy maker's strategy of turning its legacy brands into modern media properties, with more than a dozen other live-action films coming up.
"Our job is to take brands that are timeless and make them timely," is how Mattel Chairman and Chief Executive Ynon Kreiz <a href="https://www.cnbc.com/video/2023/10/25/mattel-ceo-ynon-kreiz-talks-q3-earnings-with-jim-cramer.html">put it in an interview</a>.
Yet the El Segundo company is not feeling much affection from investors. (Nope, Mattel is not based in the film's imposing Century City high-rise.) After surging during the pandemic, the company's stock performance has been middling, despite a surge after "Barbie" was released and the recent stock market rally.
This has caught the attention of an activist investor, which is pressuring Mattel to change course and better reward its shareholders.
The New York hedge fund Barington Capital Group isn't calling for Barbie to be put on the auction block, but the same can't be said for two of its other top brands: Its line of premium-priced <a href="https://shop.mattel.com/pages/american-girl">American Girl</a> dolls and its iconic <a href="https://shop.mattel.com/collections/fisher-price">Fisher-Price</a> line of baby, toddler and preschool toys.
Barington, which kicked off its campaign with a Feb. 1 letter to Kreiz, is also taking aim at Mattel's executive compensation and governance structure, while calling for $2 billion in stock buybacks to provide a better return for investors. It hasn't disclosed its stake in the company.
"We want to enhance value for all of the shareholders and owners of the company, including the management team," said James Mitarotonda, chairman of Barington. "The company needs to either fix the businesses or sell them."
Barington calculated that Mattel's stock fell 13.2% in the two years preceding its letter, underperforming the Standard &amp; Poor's 500 index by more than 20%. Shares of Mattel have risen about 7% during February's stock rally, closing at $19.61 on Tuesday. The stock hit a high of $26.97 during Kreiz's tenure in May 2022.
The hedge fund doesn't have as high a profile as some other shareholder activists, such as Carl Icahn or Nelson Peltz, who is currently <a href="https://www.latimes.com/entertainment-arts/business/story/2024-02-26/nelson-peltz-proxy-fight-disney-bob-iger-heinz-snapple">battling Disney</a>. Barington, though, has waged roughly 100 campaigns, Mitarotonda said, including convincing L Brands, which is now Bath &amp; Body Works, to spin off Victoria's Secret as a separate company.
In response to the campaign, Mattel said it was looking "forward to engaging with Barington as we do with all our shareholders. We welcome this initial outreach and we are reviewing their letter." Mitarotonda said Barington has since had "positive" discussions with Kriez but declined to discuss them in detail.
Given the unprecedented success of "Barbie," Mattel seems an unlikely target for an activist investor.
Despite past turmoil in the toy industry and stiff competition from digital games, the company has experienced a comeback since Kreiz took over in 2018 — a year when the company posted a $1-billion loss. Barington acknowledged that, pointing to the company's higher margins, lower debt leverage and $700 million growth in annual revenue by the third quarter of last year.
"We recognize the meaningful improvements that you and your team have delivered over the last six years," the letter stated.
However, the big growth in net sales was achieved in 2021 when parents were still saying home en masse with their kids. Since then, annual net sales have flatlined at $5.4 billion while annual net income declined about 75% over the three years to $214 million last year, according to FactSet. For the fourth quarter, the company reported a 16% increase in net sales, with sales flat for all of 2023.
Mattel wasn't the only company hit by the toy industry's soft 2023, which saw a 7% sales decline in 12 global markets, according to Circana. The consumer data analyst cited inflation and the continuing challenge of <a href="https://www.latimes.com/business/story/2024-02-15/child-free-by-choice-for-financial-reasons-falling-birth-rates">lower birth rates</a> as issues. Mattel rival Hasbro, the maker of Transformers and G.I. Joe, reported a fourth-quarter decline in revenue and higher losses, sending shares skidding.
An Israeli native and UCLA business school graduate, Kreiz, 58, previously led YouTube content producer Maker Studios, which Disney acquired in 2014. He also had worked for Haim Saban, who made billions of dollars on the Power Rangers franchise. Kreiz was Mattel's chairman when he was named chief executive, becoming the fourth person to hold the CEO title since 2012.
From the start, Kreiz's goal was to supercharge Mattel's lagging efforts to become a higher-valued entertainment company. That meant reviving efforts to get Barbie a starring role. The broader strategy includes television, digital games, publishing and consumer products. Mattel also is opening a small theme park in suburban Phoenix.
"Barbie" succeeded beyond Mattel's wildest expectations after Kreiz gave unusual creative control to director Greta Gerwig. (That choice paid off at the box office, but it didn't do Kreiz any favors considering the film's less-than-flattering portrayal of Mattel's corporate chief by comedian Will Ferrell).
The company's slate of films includes an upcoming Barney motion picture produced by Academy Award winning actor Daniel Kaluuya, a Hot Wheels movie by blockbuster producer J.J. Abrams and a Rock ‘Em Sock ‘Em Robots movie starring Vin Diesel.
It appears to be a formula for continued success, though analyst Jim Chartier of Monness Crespi Hardt &amp; Co. said it's important to remember the truism: There's no guarantees in Hollywood. He noted how Mattel rival Hasbro had a hit with its 2007 "Transformers" film but couldn't duplicate that with some other properties.
"Mattel's got big people behind these other movies but you can't assume these properties are going to be blockbusters," said Chartier, who has a "buy" rating on Mattel and a $26 price target.
Still, no one is doubting the long-established toy industry strategy of courting Hollywood — the issue Barington has is with the other two big brands.
Mattel's infant, toddler and preschool segment, which includes Fisher-Price, has experienced a more than 40% decline in annual revenue since 2015 through the third quarter of last year, even as global revenue for such toys grew, according to Barington's letter. Similarly, it said, American Girl's annual revenue fell 61% since 2016, even as global doll revenue grew.
Barington calculated that without those sales declines, Mattel would have nearly doubled its four-year revenue growth rate. The investor suggested selling the businesses. "Mattel may not be the right owner of these brands," its letter stated.
Mattel <a href="https://www.latimes.com/archives/la-xpm-1993-08-20-mn-25728-story.html">acquired Fisher-Price</a> in 1993 and, according to the company, it remains the bestselling infant and preschool brand in the world. Even before Barington's letter, Mattel announced a shake-up at Fisher-Price, telling employees in January that the toy line's general manager and global head of infant and preschool, Chuck Scothon, <a href="https://www.wsj.com/business/mattels-head-of-fisher-price-to-depart-as-sales-lag-5463265f">would be leaving</a> after six years at the helm.
The American Girl line of premium large dolls, which feature multiple collections, generally are priced at more than $100. The dolls are sold online and at major retailers, while Mattel <a href="https://www.americangirl.com/pages/retail-los-angeles">operates retail boutiques</a>, including in Los Angeles, where kids can hold parties, receive salon services and share tea time with their dolls.
Analyst Linda Bolton Weiser of D.A. Davidson said she thinks it's more likely that Mattel would sell American Girl than Fisher-Price, since the doll line suffers from lower-priced competition.
(Target, for example, sells an exclusive line of <a href="https://www.target.com/b/our-generation/-/N-5r27n">rival dolls</a> called Our Generation that can cost a quarter of the price.)
Mattel shows no signs of abandoning the doll line it acquired in 1998. It is developing a film with Paramount for the big screen, and during comments Kreiz made in response to Barington's letter on the Feb. 7 earnings call, he said Mattel is "very confident in the long-term value of American Girl."
Mattel's earnings announcement also stated that its board had approved a $1-billion share repurchase after buying back $203 million worth of shares in 2023. And the company announced two new directors with experience in media, tech and finance. Kreiz cautioned against reading into those developments. "These are things that we take our time to consider and analyze," he said during the earnings call.
Mitarotonda called the $1-billion share buyback a "good start" and said he was "looking forward to more" in the future.
Barrington also has taken issue with Mattel over alleged excessive stock-based compensation to the management team. It said in its letter that Kreiz received $29.8 million in such compensation from 2020 through 2022, which was 44% higher than the median aggregate of what his peer chief executives received during that period.
Kreiz's total compensation in 2022 was $11.9 million, including a base pay of $1.5 million, stock awards of $7.69 million and stock options of $2.56 million, according to a regulatory filing.
Weiser said that Kreiz has done an "excellent job" in a difficult industry. "He brought the company back from the brink of bankruptcy," she said.
The criticism of Kreiz's compensation was based on a peer group developed by the company to set its own compensation, Mitarotonda said, adding the fund's letter didn't note how the group appears stacked with higher-revenue companies, minimizing how excessive the stock awards actually were. Hershey, Live Nation and Campbell Soup are among the members.
In regards to governance, Barington wants Kreiz to step down from his board chairmanship. Splitting the role from his chief executive duties are a fundamental principle of good corporate governance, Mitarotonda said, likening it to the checks and balances system enshrined in the U.S. Constitution.
"Does good governance create value in and of itself? No, it does not. But it does set the right culture in order for you to have a good management team that does deliver the right results," he said.
Mattel is forecasting flat sales but profit growth this year as it continues to cut costs. Global toy sales are expected again to be soft, though not as poor as 2023.
The company plans an investor day March 7 when it is expected to roll out new products. During the earnings call, Kreiz said that this year it will expand Fisher-Price's core product lines and introduce an "exciting new segment."

"Problems At Mattel: Despite 'Barbie' Success, Its Stock Is A Dud. Now An Activist Investor Is Circling" - LA Times

Options

Markets

Mattel Option Alert: Fri $19 Calls Sweep (35) near the Ask: 1772 @ $0.4 vs 914 OI; Ref=$19.09

DA Davidson analyst Linda Bolton Weiser maintains Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) with a Buy and raises the price target from $25 to $26.

DA Davidson Maintains Buy on Mattel, Raises Price Target to $26

JP Morgan analyst Christopher Horvers maintains Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) with a Neutral and raises the price target from $19 to $20.

JP Morgan Maintains Neutral on Mattel, Raises Price Target to $20

Mattel Sees FY24 Adj. EPS $1.35-$1.45 Vs $1.37 Est.

Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) reported its Q4 earnings results on Wednesday, February 7, 2024 at 04:05 PM.
Here's what investors need to know about the announcement.
<h3>Earnings</h3>
Mattel missed estimated earnings by 9.38%, reporting an EPS of $0.29 versus an estimate of $0.32.
Revenue was up $219.00 million from the same period last year.
<h3>Past Earnings Performance</h3>
Last quarter the company beat on EPS by $0.22 which was followed by a 7.61% drop in the share price the next day.
Here's a look at Mattel's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2023</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.86</td>
<td>-0.02</td>
<td>-0.18</td>
<td>0.29</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>1.08</td>
<td>0.10</td>
<td>-0.24</td>
<td>0.18</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>1.83B</td>
<td>1.00B</td>
<td>740.73M</td>
<td>1.68B</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>1.92B</td>
<td>1.09B</td>
<td>814.60M</td>
<td>1.40B</td>
</tr>
</tbody>
</table>

To track all earnings releases for Mattel <a href="https://www.benzinga.com/quote/MAT/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

Recap: Mattel Q4 Earnings

Mattel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) reported quarterly earnings of $0.29 per share which missed the analyst consensus estimate of $0.31 by 6.45 percent. The company reported quarterly sales of $1.62 billion which missed the analyst consensus estimate of $1.66 billion by 2.39 percent. This is a 15.62 percent increase over sales of $1.40 billion the same period last year.

Earnings Misses

Mattel Q4 2023 Adj EPS $0.29 Misses $0.31 Estimate, Sales $1.62B Miss $1.66B Estimate

Company kicks off collaboration with popular Disney Princess and Disney Frozen franchises—with fan favorites Ariel, Tiana, and Cinderella first to join magical lineup in Spring 2024
Today, <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.americangirl.com%2F&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=American+Girl&amp;index=1&amp;md5=f4717842d909173488492fed39844253">American Girl</a> and <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.disney.com%2F&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=Disney&amp;index=2&amp;md5=b3382c7d2ce76f16492a3d154615bdc7">Disney</a>—two of the world's most celebrated brands best known for their inspirational characters, rich storytelling, and memorable experiences—are excited to reveal a special collection across the Disney Princess franchise, and the Disney Frozen franchise, coming later this year.
This press release features multimedia. View the full release here: <a href="https://www.businesswire.com/news/home/20240207744278/en/">https://www.businesswire.com/news/home/20240207744278/en/</a>
Building on the success of last year's Disney &#x7C; American Girl Disney Princess Collector Doll series, the first wave of a new core collection revealed today, features beloved characters Disney's Ariel, Tiana, and Cinderella. Each princess character is represented with a beautifully crafted 18-inch doll and an authentically designed signature dress, with plenty of fashion extras. The collection also includes additional highly detailed outfits and several special accessories to further expand the storytelling and play.
"Fandom for American Girl and Disney runs deep, and a collaboration has long been asked for by our mutual fans," says Jamie Cygielman, General Manager of American Girl. "Now, we're making dreams come true with a magical collection of timeless characters that will captivate our fans and send their imaginations soaring."
"The launch of the initial three collector dolls last summer was very popular and demonstrated the desire from our fans for more of this iconic collaboration between Disney and American Girl," said Rob Michaelis, VP, North America Brand Commercialization, Hardlines &amp; Consumables for Disney. "The talented teams at American Girl and Disney are so proud of the incredible details in this new expanded line of Disney Princess inspired dolls which provide an authentic representation of Disney's beloved characters."
The new Disney and American Girl collection features beloved characters, with the following fan favorites first to join the magical lineup:
<ul>
<li><a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.americangirl.com%2Fproducts%2Famerican-girl-disney-princess-ariel-18-inch-doll-hwd22&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=American+Girl%26%23174%3B+Disney+Princess+Ariel+Doll&amp;index=3&amp;md5=a43c2231e7ae1c2e598bc5f81921e28a">American Girl&#xAE; Disney Princess Ariel Doll</a> has aqua-colored eyes and red wavy hair with sideswept bangs and comes dressed in a classic mermaid-style dress.</li>
<li><a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.americangirl.com%2Fproducts%2Famerican-girl-disney-princess-tiana-18-inch-doll-hwd23&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=American+Girl%26%23174%3B+Disney+Princess+Tiana+Doll&amp;index=4&amp;md5=5d23ff27b37515fb1aaad1c00fb13e03">American Girl&#xAE; Disney Princess Tiana Doll</a> has brown eyes and curly black hair styled in a high bun with face-framing tendrils and arrives in her signature green-and-yellow dress.</li>
<li><a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.americangirl.com%2Fproducts%2Famerican-girl-disney-princess-cinderella-18-inch-doll-hwd24&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=American+Girl%26%23174%3B+Disney+Princess+Cinderella+Doll&amp;index=5&amp;md5=4335ee406df252fe4c021f86fe16b3ec">American Girl&#xAE; Disney Princess Cinderella Doll</a> has blue eyes and blonde hair styled in a high bun with blue headband and curled, sideswept bangs and arrives wearing her iconic blue ballgown and glittery "glass slippers."</li>
</ul>
The Disney and American Girl collection is available now at <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.americangirl.com&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=americangirl.com&amp;index=6&amp;md5=f4a69e8fbd8b02057790e88acd3e4ee1">americangirl.com</a> and <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.americangirl.com%2Fpages%2Fretail&amp;esheet=53893086&amp;newsitemid=20240207744278&amp;lan=en-US&amp;anchor=American+Girl+retail+stores&amp;index=7&amp;md5=eccd6519c4320b477ea9517461084d2f">American Girl retail stores</a> nationwide.

American Girl And Disney Reveal First Wave Of Enchanting New Doll Collection

In a report released today, Linda Bolton Weiser from D.A. Davidson maintained a Buy rating on Mattel (MAT – Research Report), with a price target o...

D.A. Davidson Keeps Their Buy Rating on Mattel (MAT)

Analysts fell to the sidelines weighing in on Beauty Health (SKIN – Research Report) and Mattel (MAT – Research Report) with neutral ratings, indic...

Analysts' Top Consumer Cyclical Picks: Beauty Health (SKIN), Mattel (MAT)

Companies in the Consumer Cyclical sector have received a lot of coverage today as analysts weigh in on Mattel (MAT – Research Report), Dick's Spor...

Analysts Conflicted on These Consumer Cyclical Names: Mattel (MAT), Dick's Sporting Goods (DKS) and Under Armour (UAA)

Tracking John Rogers' Ariel Investments Portfolio - Q4 2023 Update

In a report released today, Drew Crum from Stifel Nicolaus maintained a Buy rating on Mattel (MAT – Research Report), with a price target of $23.00...

Stifel Nicolaus Remains a Buy on Mattel (MAT)

Mattel (MAT) has issued an announcement. Michael Dolan, who has played a significant role at Mattel, Inc. since 2004, serving as the Independent Le...

Michael Dolan Exits Mattel's Board after Two Decades

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Anyone else notice that Gap (NYSE:<a href="https://investorplace.com/stock-quotes/gps-stock-quote/">GPS</a>) stock has been on an absolute tear since May 2023?



Since May, GPS stock has made a big move from $7 to $27. Much of it is justified, as it&rsquo;s coming from strategic initiatives starting to pay off. Gap seems to have turned the corner across all its brands &ndash; Old Navy, Gap, Banana Republic, and Athleta.



Now in fairness, Gap appears to be at a critical juncture where it either breaks out or breaks down.



<div>
Could Gap <a href="https://twitter.com/search?q=%24GPS&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GPS</a> finally breakout? <a href="https://t.co/8ljkmrShvo">pic.twitter.com/8ljkmrShvo</a>&mdash; Michael A. Gayed, CFA (@leadlagreport) <a href="https://twitter.com/leadlagreport/status/1773037444390134151?ref_src=twsrc%5Etfw">March 27, 2024</a></div>What has caused the most recent surge?



<h2>Why Gap (GPS) Stock Is Surging Higher</h2>



To put it simply: leadership. It&rsquo;s more than fundamentals at this point. It&rsquo;s been a long time since investors got excited for GPS stock given lack of a clear vision for Gap and its many brands. However, this is all starting to change in investor minds.



Under the <a href="https://www.gapinc.com/en-us/articles/2023/07/richard-dickson-appointed-president-and-chief-exec">new leadership of CEO Richard Dickson</a>, Gap is on a mission to rejuvenate its brand and secure its position in the competitive fashion market. Dickson, known for his transformative work with the Barbie brand at Mattel (NYSE:<a href="https://investorplace.com/stock-quotes/mat-stock-quote/">MAT</a>), brings a fresh perspective that could be pivotal for Gap&rsquo;s turnaround.



Dickson is shaking things up at Gap with a fresh strategy focused on staying trendy, offering great value, and connecting with consumers from all walks of life. The goal is to have Gap&rsquo;s clothes reflect what&rsquo;s hot right now. The company is also focusing on pricing and ensuring its ads speak everyone&rsquo;s language. This isn&rsquo;t just about looking good, but also about welcoming everyone into the Gap family.



On the eco-friendly front, Gap is going green in a big way, <a href="https://www.gapinc.com/en-us/values/sustainability/enriching-communities/climate">targeting reductions in carbon emissions</a> by 2030 and switching to sustainable materials across the board. The company also plans to expand into the Asia-Pacific region with 150 new stores.



Finally, Dickson is doubling down on what&rsquo;s cool and comfy by boosting Old Navy&rsquo;s athleisure gear and giving <a href="https://www.businessinsider.com/gap-ceo-banana-republic-can-be-quiet-luxury-brand-2023-11">Banana Republic a luxury makeover</a>. And for the younger crowd, making Gap hoodies the next big thing is the game plan.



I like the vision here. Gap certainly isn&rsquo;t an AI stock, but it could continue to surprise to the upside for years to come.



On the date of publication, Michael Gayed did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://protect-us.mimecast.com/s/YUYqC31vVVI7KAkriDfKi6?domain=investorplace.com/">Publishing Guidelines</a>.
<div>The Lead-Lag Report is provided by Lead-Lag Publishing, LLC. All opinions and views mentioned in this report constitute our judgments as of the date of writing and are subject to change at any time. Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by the Lead-Lag Report are independent of other services provided by Lead-Lag Publishing, LLC or its affiliates, and positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Lead-Lag Publishing, LLC, its members, officers, directors and employees expressly disclaim all liability in respect to actions taken based on any or all of the information on this writing.

Michael A. Gayed is the Publisher of <a href="https://leadlagreport.substack.com/subscribe?coupon=195a5dad">The Lead-Lag Report</a>, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers.

InvestorPlace readers that are new subscribers to the <a href="https://leadlagreport.substack.com/subscribe?coupon=195a5dad">The Lead-Lag Report</a> can receive a 30% discount.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/03/gap-isnt-an-ai-stock-but-it-has-years-of-upside-surprises-ahead/">Gap Isn't an AI Stock, But It Has Years of Upside Surprises Ahead</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.