Mattel's sales decrease 10% each year for many years. No wonder here, if you had kids you'd know what they like more: iPads or dolls.
Hasbro showed us their numbers and what effect Toys-R-Us closure had on toys' sales. Question is: what tricks did Mattel use to come up with these numbers? Perhaps old school channel stuffing, they even went as far as reducing ad budget by 30% to show up with better than expected losses to the party. Barbie/HotWheels sales are up (really?), but all other toy lines are down by 20-30%. That's a pretty bad indicator when companies start to reduce their ad budgets: sales will start dropping even faster.
But they had no other choice IMO but to fix up these numbers by reducing expenses: if they didn't they would be out of S&P500 quite soon; they just deferred their fate for a while. In a year Mattel will be sub $5 stock and will be removed from $SPY
Hasbro showed us their numbers and what effect Toys-R-Us closure had on toys' sales. Question is: what tricks did Mattel use to come up with these numbers? Perhaps old school channel stuffing, they even went as far as reducing ad budget by 30% to show up with better than expected losses to the party. Barbie/HotWheels sales are up (really?), but all other toy lines are down by 20-30%. That's a pretty bad indicator when companies start to reduce their ad budgets: sales will start dropping even faster.
But they had no other choice IMO but to fix up these numbers by reducing expenses: if they didn't they would be out of S&P500 quite soon; they just deferred their fate for a while. In a year Mattel will be sub $5 stock and will be removed from $SPY