Mattel Stock Drops on Earnings

Mattel stock plummeted overnight and today on news that Q1 losses were worse than the company expected.  It’s kind of like you told your parents you were getting a B+ in Geometry and you came home with a C-.  Somehow it’s much worse because your parents think you are clueless or lying.  In this case, Mattel anticipated a loss of 17 cents a share and came home to Wall Street with a loss of 32 cents a share.

The American Girl brand was down 12%, and I think I know some people who may have contributed to that 😉

The stock is trading at a 52 week low (it means the stock is selling for the lowest price in the last 52 weeks).

You can read for yourself on CNBC http://www.cnbc.com/2017/04/20/mattel-reports-first-quarter-earnings-2017.html but I liked this story http://www.wtae.com/article/mattels-stock-plummets-as-barbie-american-girl-dolls-fail-to-sell/9540098

Not impressed that the Mattel CEO has a background with Discover Card and also Groupon.  

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5 thoughts on “Mattel Stock Drops on Earnings

  1. Flo

    I can’t say that I’m a bit surprised. Between the whole permapanties fiasco and the obvious decline in quality, I’m shocked that it isn’t worse. I recently gave in and picked up a few items from Kohls and it was a mixed bag, some items very nice and others very poor. I just don’t feel like spending my hard earned money on this kind of quality, and I’m sure that others are feeling the same way. They need to be paying attention to the reviews on their website, so many bad comments now, something you never used to see!

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    1. Jen Post author

      It seems like AG is following the Barbie method of a lot of new products all the time, but Barbie’s earnings were also down like 12-13%. I’m not sure this is the path to follow.
      I saw the Tenney picnic blanket at Kohls, which seems really cute. I have the OG,one, though, so it’s hard to rationalize having 2 sets.

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  2. Marilyn

    Perhaps if Mattel would get the American Girl and their accessories,[especially the books back to their originality] they would do a whole lot better.
    Joan,Marion and Marilyn

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    1. Jen Post author

      I agree… my uneducated instinct is that some ideas aren’t scalable to a huge company with stockholders. Getting a new doll launched every 2 years or so might have been the best configuration for the company.

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