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Mattel (MAT) Benefits From Robust Demand for Barbie Brand
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Mattel, Inc. (MAT - Free Report) is well-poised for growth, courtesy of a highly-efficient supply chain and strong demand for its products. In the past six months, the company’s shares have appreciated 21.1%, against the industry’s decline of 1.4%.
Growth Drivers in Place
Barbie brand continues to instill investor confidence with solid performance. In the fourth quarter, the Barbie brand’s worldwide gross billings witnessed an improvement of 18% on a reported basis and 19% at cc. Barbie's point of sales increased in up low-single digits. The upside can primarily be attributed to design-led innovation, cultural relevance, execution excellence and customers’ positive response to the brand. Per NPD, Barbie strengthened its position as the number one Global Doll brand in 2021 for the second consecutive year. Going forward, the brand has new fashion segments like Barbie EXTRA, and Ken Turned 60 in its pipeline.
The company has been benefiting from licensing agreement. In January 2022, the company entered into a multi-year global licensing agreement with Disney to develop and market the latter’s Princess and Frozen branded line of products. The deal marks the reunion of Disney characters with Mattel after a gap of nearly seven years. Built upon its existing licensing arrangement with Disney for Pixar Animation Studio’s Toy Story and Cars franchises as well as Lightyear , the company anticipates launching the new products starting 2023. Per the agreement, Mattel will develop toy lines for Disney Consumer Products, Games and Publishing, including fashion dolls, small dolls and figures.
Image Source: Zacks Investment Research
Robust North America sales have been driving the company’s performance. During the fourth quarter, gross billings in North America rose 13% (as reported and at constant currency) year over year. This can primarily be attributed to an increase in sales in Dolls (including Barbie, Polly Pocket, and Spirit), Action Figures, Building Sets, Games and Other (including Masters of the Universe, Jurassic World and Plush), Vehicles (including CARS), and Infant, Toddler, and Preschool (including Power Wheels). Net sales in the North America segment climbed 14% year over year on a reported and constant-currency (cc) basis.
With brick-and-mortar stores open in most of the markets, consumers have resumed in-person shopping, particularly in regions with lower e-commerce penetration. However, the importance of online retail and e-commerce platforms cannot be ruled out as e-commerce POS represented more than 31% of its total POS during fourth-quarter 2021. The company’s POS was up low-single digits in fourth quarter 2021.
Funko sports a Zacks Rank #1 at present. FNKO has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 17.7% in the past year.
The Zacks Consensus Estimate for Funko’s current financial-year sales and EPS (earnings per share) suggests growth of 22.7% and 26.8%, respectively, from the year-ago period’s reported levels.
JAKKS Pacific presently sports a Zacks Rank #1. JAKK has a trailing four-quarter earnings surprise of 63.1%, on average. Shares of the company have surged 84.8% in the past year.
The Zacks Consensus Estimate for JAKK’s current financial-year sales and EPS indicates growth of 4.4% and 8.5%, respectively, from the year-ago period’s reported levels.
Bluegreen Vacations presently carries a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 425.1%, on average. The stock has surged 64.7% in the past year.
The Zacks Consensus Estimate for BVH’s current financial-year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.
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Mattel (MAT) Benefits From Robust Demand for Barbie Brand
Mattel, Inc. (MAT - Free Report) is well-poised for growth, courtesy of a highly-efficient supply chain and strong demand for its products. In the past six months, the company’s shares have appreciated 21.1%, against the industry’s decline of 1.4%.
Growth Drivers in Place
Barbie brand continues to instill investor confidence with solid performance. In the fourth quarter, the Barbie brand’s worldwide gross billings witnessed an improvement of 18% on a reported basis and 19% at cc. Barbie's point of sales increased in up low-single digits. The upside can primarily be attributed to design-led innovation, cultural relevance, execution excellence and customers’ positive response to the brand. Per NPD, Barbie strengthened its position as the number one Global Doll brand in 2021 for the second consecutive year. Going forward, the brand has new fashion segments like Barbie EXTRA, and Ken Turned 60 in its pipeline.
The company has been benefiting from licensing agreement. In January 2022, the company entered into a multi-year global licensing agreement with Disney to develop and market the latter’s Princess and Frozen branded line of products. The deal marks the reunion of Disney characters with Mattel after a gap of nearly seven years. Built upon its existing licensing arrangement with Disney for Pixar Animation Studio’s Toy Story and Cars franchises as well as Lightyear , the company anticipates launching the new products starting 2023. Per the agreement, Mattel will develop toy lines for Disney Consumer Products, Games and Publishing, including fashion dolls, small dolls and figures.
Image Source: Zacks Investment Research
Robust North America sales have been driving the company’s performance. During the fourth quarter, gross billings in North America rose 13% (as reported and at constant currency) year over year. This can primarily be attributed to an increase in sales in Dolls (including Barbie, Polly Pocket, and Spirit), Action Figures, Building Sets, Games and Other (including Masters of the Universe, Jurassic World and Plush), Vehicles (including CARS), and Infant, Toddler, and Preschool (including Power Wheels). Net sales in the North America segment climbed 14% year over year on a reported and constant-currency (cc) basis.
With brick-and-mortar stores open in most of the markets, consumers have resumed in-person shopping, particularly in regions with lower e-commerce penetration. However, the importance of online retail and e-commerce platforms cannot be ruled out as e-commerce POS represented more than 31% of its total POS during fourth-quarter 2021. The company’s POS was up low-single digits in fourth quarter 2021.
Zacks Rank & Key Picks
Mattel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Consumer Discretionary sector are Funko, Inc. (FNKO - Free Report) , JAKKS Pacific, Inc. (JAKK - Free Report) and Bluegreen Vacations Holding Corporation .
Funko sports a Zacks Rank #1 at present. FNKO has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 17.7% in the past year.
The Zacks Consensus Estimate for Funko’s current financial-year sales and EPS (earnings per share) suggests growth of 22.7% and 26.8%, respectively, from the year-ago period’s reported levels.
JAKKS Pacific presently sports a Zacks Rank #1. JAKK has a trailing four-quarter earnings surprise of 63.1%, on average. Shares of the company have surged 84.8% in the past year.
The Zacks Consensus Estimate for JAKK’s current financial-year sales and EPS indicates growth of 4.4% and 8.5%, respectively, from the year-ago period’s reported levels.
Bluegreen Vacations presently carries a Zacks Rank #2 (Buy). BVH has a trailing four-quarter earnings surprise of 425.1%, on average. The stock has surged 64.7% in the past year.
The Zacks Consensus Estimate for BVH’s current financial-year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.