A familiar toy maker is set to bring its most famous doll to fans in a live action movie this summer as it moves to accelerate growth.
Ynon Kreiz, chairman and CEO of toymaker Mattel (MAT), told Jim Cramer on a recent episode of the Mad Money TV show that the turnaround at Mattel is now complete and the company is returning to growth mode.
He said his company's balance sheet has been fixed, their brands have been reinvigorated and Mattel is focused on monetizing intellectual property with digital entertainment.
Mattel reported earnings recently that included a top- and bottom-line earnings beat with double-digit sales growth and expanding gross margins.
Real Money technical analyst Bruce Kamich said recently that the charts look favorable. “ In the short-run MAT might pullback closer to the breakout level around $23.50,” Kamich wrote recently on Real Money. “But after that correction is over we would expect further gains to the $36 area.”
Kreiz told Cramer that the company is very excited for its upcoming movie featuring Barbie. While there's no release date yet, the event is "worth the wait," Kreiz said. Barbie may be 63 years old, but she's more modern and relevant than ever, he said. The film stars Margot Robbie as Barbie.
The Barbie brand posted its best full-year sales results of all time in 2021.
And company products are winning awards. The Hot Wheels Singles 1/64 Assortment was named the 2021 global top-selling toy of the year according to the NPD Group, a leading global information company
Mattel has also proven that card games were not just for the pandemic. It turns out that Uno is "number one" in more ways than one. It was ranked the number one card game of 2021 by the NPD group.
Kreiz said Mattel's supply chain is also proving to be a competitive advantage, one they carefully manage to keep toys on store shelves and in the hands of their customers.
