Mattel(MAT)2025-02-25 23:14Sales and Customers - In 2024, Mattel's three largest customers accounted for approximately 44% of worldwide consolidated net sales, with Walmart at 0.68 billion, and Amazon at 507.3 million, representing 9.4% of net sales, a slight decrease from 9.6% in 2023 and 9.8% in 2022[45]. - Royalty expenses for 2024 were 249.8 million in 2023 and $230.8 million in 2022[38]. - Currency exchange rate fluctuations may impact Mattel's results, and the company employs hedging strategies to mitigate foreign currency transaction exposure[46]. Product Development and Strategy - The company plans to continue expanding its product offerings in 2025, including new releases for popular franchises like Barbie, Hot Wheels, and American Girl[20][24][22]. - Fisher-Price aims to enhance consumer engagement with new product offerings and global expansion of its Wood line in 2025[23]. - The company faces increasing competition in the toy industry, influenced by trends such as shorter product life cycles and the rise of digital games[31]. Operations and Manufacturing - Mattel's manufacturing facilities are primarily located in China, Indonesia, Malaysia, Mexico, and Thailand, with plans to discontinue production at certain plants in China[42]. - Mattel's business is highly seasonal, with significant sales occurring during the holiday season, leading to increased production and inventory levels in the first three quarters[32][33]. - As of December 31, 2024, Mattel had approximately 34,000 employees, with 86% (about 29,600) located outside the United States[52]. - Mattel's global manufacturing labor workforce consists of approximately 25,100 employees[52]. Employee Engagement and Compliance - Mattel was recognized as one of Forbes 2024 World's Best Employers and named to Fast Company's Most Innovative Companies of 2024[54]. - The company emphasizes employee engagement and development, offering various online and instructor-led training programs[56]. - The company offers several benefits to promote employee well-being, including health insurance options and retirement plans[58]. - Mattel believes it is in substantial compliance with various federal, state, local, and international laws and regulations applicable to its business[51]. - The company maintains a quality control program to ensure compliance with product safety requirements, although recalls could adversely affect its business[49]. - Mattel's operations are subject to environmental laws and regulations, and it is not aware of any material cleanup liabilities[50]. - The company regularly collects feedback through an annual global engagement survey to improve employee experience and workplace culture[55]. Advertising and Regulatory Compliance - Mattel's advertising and promotion activities are subject to multiple regulations, including the Federal Trade Commission Act[49].