Editor’s note: This article was first published in January 2014 as a reaction to Mattel’s fourth-quarter 2013 results; the 13% fall in Mattel’s shares it cites was an intraday move on the day of writing. This January 2014 buy view is kept as a historical record. It is not investment advice.
Mattel shares are falling 13% right now after it emerged that the toy company’s net sales have fallen 6% worldwide, while sales of its main brands such as Barbie and Fisher-Price have dropped 13%.
However, investors’ reaction could be overdone, since the company’s results could be read as positive, although they fell short of the growth investors were expecting. If the shares keep falling, Mattel could offer an ideal moment to buy into the stock, as it is simply the victim of a bad year caused by weakness in the US toy market and by the consumer slump that still persists in much of the world.
As for Barbie, the company explained that the dolls are losing popularity to Monster High, those hideous dolls that children love so much and that are also owned by Mattel.
You can read the company’s full press release on its website.
Mattel plans to pursue a range of strategies to grow in new markets and deliver value to its shareholders.
In principle, at its current price it could be worth buying, because this company has so far managed to keep up with its sector, although we will wait and see how it performs over the next few days.
Featured image: Coolcaesar, CC BY-SA 3.0, via Wikimedia Commons.
