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Mattel's (MAT) Barbie Partners Balmain, Unveils New Product-Line

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Mattel, Inc.’s MAT Barbie brand recently announced its partnership with a French luxury fashion label — Balmain — to launch a new global ready-to-wear fashion and accessories. The collaboration involves inspiration from the diverse Parisian boulevards and avenues as well as from Balmain’s French style of collections. The company stated that the product line will be free from arbitrary gender limitations.

With this partnership, Barbie would also enter the digital space by launching three Barbie x Balmain NFTs. The company intends to auction three unique NFTs through the Mattel Creations platform.

Richard Dickson, president and chief operating officer of Mattel, stated, “As a fashion house committed to innovation in unexpected and joyous ways, Balmain, under Olivier Rousteing’s creative direction, is the perfect partner to translate the iconography that is unique to Barbie into a modern iteration of digital art and physical fashion.”

Increased Focus on Barbie Brand

With over 62 years of history, Barbie has been instilling investors’ confidence with solid performance. In third-quarter 2021, Barbie brand’s worldwide gross billings witnessed an improvement of 4% on a reported basis and 3% at cc. Barbie point of sales increased 3%. The upside can primarily be attributed to design-led innovation, cultural relevance, executional excellence and customers’ positive response to the brand. Per NPD, Barbie strengthened its position as the number one Global Doll brand in third-quarter 2021. Going forward, the company plans to develop Barbie Fashion Battle, a reality show where designers compete for the chance to create a fashion collection for Barbie. During second-quarter 2021, the company gave green signal to the new Barbie feature film and announced the commencement of production in 2022 with a targeted release in 2023.

Price Performance

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Shares of the company have gained 22.2% in the past year against the industry’s 16.5% decline. The company is benefiting from robust e-commerce growth, product innovation, marketing partnerships, promotional initiatives and digital efforts. This along with initiatives toward capturing the full value of its IP and transforming itself into a high-performing toy company bodes well. Going forward, the company is focused on strong cost and productivity initiatives to support growth, operate more efficiently and rebuild margins.

However, coronavirus-related woes persist. This along with dismal store traffic on account of travel and other local restrictions are a concern. The company is actively monitoring the global situation and the impact of the same on its financial condition, liquidity, operations, suppliers, industry, and workforce. Earnings estimates for 2022 have remained unchanged in the past 30 days, limiting the upside potential of the stock.

Zacks Rank & Key Picks

Mattel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and Century Casinos, Inc. CNTY.

Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 65.5% in the past year.

The Zacks Consensus Estimate for Hilton Grand Vacations’ 2022 sales and earnings per share (EPS) suggests growth of 27.7% and 154.4%, respectively, from the year-ago period’s levels.

Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 167.8% in the past year.

The Zacks Consensus Estimate for Bluegreen Vacations’ 2022 sales and EPS indicates a rise of 7.6% and 0.4%, respectively, from the year-ago period’s levels.

Century Casinos carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 758.9%, on average. Shares of the company have increased 85.2% in the past year.

The Zacks Consensus Estimate for Century Casinos’ 2022 sales and EPS suggests growth of 16.9% and 44.7%, respectively, from the year-ago period’s levels.


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Mattel, Inc. (MAT) : Free Stock Analysis Report

Century Casinos, Inc. (CNTY) : Free Stock Analysis Report

Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report

Bluegreen Vacations Holding Corporation (BVH) : Free Stock Analysis Report

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