Mattel, the company behind Barbie and Hot Wheels, saw its stock jump 18% after posting a better-than-expected earnings report. Despite ongoing tariff concerns, the company remains optimistic about its profit growth for 2024.
What’s Driving Mattel’s Growth?
- The company expects profit growth this year, even though sales dipped 1%.
- Stronger inventory management, cost-cutting efforts, and a flexible supply chain helped boost margins.
- Barbie sales were down, but high demand for Hot Wheels and action figures helped offset losses.
How Are Tariffs Impacting Mattel?
Recent tariffs on imports from China, Canada, and Mexico have forced Mattel to rethink its pricing strategy.
- Tariffs on Canada and Mexico have been temporarily paused, but imports from China are now subject to additional fees.
- To reduce reliance on China, the company is shifting production elsewhere and plans to shut down at least one Chinese plant.
- By 2027, no single country will account for more than 25% of Mattel’s global production.
How Is the Stock Performing?
- Shares hit $21.35, marking their best day since 2019.
- Multiple analysts raised their price targets, and Jefferies upgraded Mattel’s rating to “Buy.”
What About the Competition?
- Hasbro, the company behind Monopoly and Transformers, will release its earnings report on February 20.
- So far, Mattel’s stock is outperforming Hasbro’s in premarket trading.
What’s Next for Mattel?
Analysts believe movie releases and brand momentum will play a key role in Mattel’s 2024 success. For now, the company is proving it can navigate market challenges and keep growing.