Mattel(US:MAT) Forbes·2024-02-07 23:54Company Performance - Mattel's full-year net sales for 2023 were down 1% in constant currency compared to 2022, totaling $5.441 billion [1] - Fourth quarter net sales were reported at $1.621 billion, reflecting a 16% increase (14% in constant currency) from the same period in 2022 [1] - Adjusted earnings per share for the fourth quarter rose to 29 cents, up from 18 cents in the comparable period of 2022 [1] Industry Context - The toy industry faced challenges in 2023, with retailers starting the year with excess inventory from a weak holiday season in 2022 [2] - Overall toy industry sales are expected to decline again in 2024, but Mattel aims to maintain flat sales, indicating potential market share gains [2] - The toy industry is projected to return to growth in 2025, according to Mattel's CEO [2] Strategic Initiatives - Mattel's board has authorized a $1 billion share repurchase program in response to investor pressure to boost stock prices [2] - Activist investor James Mitarotonda has suggested divesting the American Girl and Fisher-Price divisions, claiming they negatively impact shareholder value [3] - Mattel's CEO defended the American Girl brand, highlighting its ongoing value and planned initiatives, including a live-action film [3] Market Insights - Mattel experienced a 32% increase in North American sales, outperforming many competitors in a challenging market [4] - The success of the Barbie movie contributed to sales growth, particularly during the holiday season [4] - Despite the overall decline in 2023, the toy industry remains over 25% above pre-pandemic levels, indicating a reset phase for many companies [5] Future Outlook - The toy industry is expected to focus on "newness and innovation" in 2024 to drive growth amid flat sales projections [5]