Mattel - Final Thoughts

Ticker Symbol: MAT

Final Thoughts on Mattel

Toymakers like Mattel and Hasbro successfully rode this spring’s broad market rally, recouping some of the lost territory from the past couple years. Mattel posted a loss last quarter, but was able to beat analyst expectations thanks to higher sales of its Barbie products as well as inventory cost reductions.

How much further the world’s leading toy maker will be able to trim variable costs remains to be seen, and the expiration of the 50th anniversary of the Barbie line will likely serve to trim the irregular profit line at Mattel.

On April 24th, Fitch affirmed Mattel’s IDR rating at BBB and kept the firm’s outlook at positive. Fitch cited Mattel’s leading market position, strong capital position and low leverage. Fitch tempered those upbeat expectations, noting low barriers of entry in the industry, age compression, declining-to-flat domestic revenues, and seasonality of profitability. Mattel is experiencing substantive pressures on top line revenues and has major exposure to currency fluctuations.

Article Index

• Mattel Home
• Mattel Historicals
• Mattel News
• Mattel Charts
• Mattel Final Thoughts