Mattel is known for manufacturing beloved toys such as Barbie, American Girl dolls, Hot Wheels, Fisher-Price and many more. This February 2019, following its reported fourth-quarter earnings, the company stated that its shares are slated to plummet during the year. As a result of its projected earnings forecast for the year, stocks have drastically dropped for the first time in 20 years, losing 23 per cent of its value. Its shares are now valued at $13.82, reports Lisa Fickenscher of the New York Post.
According to Sarah Whitten of CNBC, analysts initially expected the company to ring in a whopping $551.6 million for the year. However, in its forecast, Mattel announced that its company is slated to bring in between $350 million to $400 million for 2019. The price range is said to be an effect of adjusting to EBITDA as well as the currency changes for the year.
Precede Weak Sales
Mattel has been struggling for the past years. According to Fickenscher, the liquidation of Toys ‘R’ Us only worsened the economic standing of the company. To help keep the company afloat, CEO Ynon Kreiz shut down its New York headquarters and laid off more than 2,000 of its workers, cutting down $650 million in operation costs.
In addition, sales from its American Girl doll line, as well as their Fisher-Price and Hot Wheels brands, have performed poorly in the past year.
To keep the company’s spark alive, Mattel hopes to bring its iconic Barbie to the big screen, tapping Margot Robbie to play the role. Hot Wheels and American Girl films will also be produced.