Tuesday, October 17

Mattel: Using Barbie as a Launchpad

With consumer spending staying strong in some areas, our team is getting more and more confident about investing in names that have a lot more long-term upside. 

For us, a lot of factors are coming together to make Mattel ($MAT) a really attractive investment. 

We're jumping on the stock now because the company has made some significant improvements ahead of its Q3 earnings report later this month, and we want to lock in a better entry point before revenue numbers driven by the blockbuster Barbie movie push the stock into overbought territory. 

Basically, Mattel has been hammered by the same pressures bringing down the wider retail space. A weak Q4 in 2022 combined with a glut of inventory that weighed on their margins and brought in a lot of bear sentiment. 

However, since then Mattel has completely reinvented its strategy around IP in a way that's making a huge splash (Barbie is really only the beginning here), but Mattel's most impactful work in the past 9 months has simply been getting back to basics. Mattel is getting their inventory glut under control, re-upping massive partnerships, and leaning hard into a diverse IP strategy that is bringing new customers and higher-margin customers in from every angle. 

So, ahead of this month's Q3 earnings call, let's look at Mattel's transformation back into an industry leader and see where they can build from here.👇

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