Activist investor Barington Capital is urging Mattel to consider selling off its underperforming American Girl and Fisher-Price brands, citing revenue declines and their negative impact on shareholder value. Barington also criticized Mattel's excessive stock-based compensation and urged the company to pause merger and acquisition efforts in favor of a $2 billion share repurchase operation. Mattel shares rose following the news, and the company stated that it looks forward to engaging with Barington and is reviewing their letter.
Mattel is planning to bring its popular doll brand, American Girl, to the big screen with a live-action movie. The film will be written and produced by Lindsey Anderson Beer, in collaboration with Paramount Pictures and Temple Hill Entertainment. Mattel's previous movie adaptation, "Barbie," earned over $1.44 billion in global ticket sales. The American Girl brand, owned by Mattel since 1998, has sold over 36 million dolls and brought in $103.7 million in net sales in the first three quarters of 2022. Mattel has been focusing on expanding its entertainment offerings and has other brands, such as Hot Wheels and Polly Pocket, in the pipeline for content development.
Mattel is developing a live-action film based on its American Girl doll line, with the movie being produced by Mattel Films, Paramount Pictures, and Temple Hill Entertainment. Lindsey Anderson Beer, the writer of "Pet Cemetery: Bloodlines," will write the script and produce the film. This project adds to the 14 live-action films already in development for Mattel Films, including movies based on Hot Wheels, Magic 8 Ball, Polly Pocket, Rock 'Em Sock 'Em Robots, and UNO. The American Girl doll movie was previously planned with MGM in 2019 but fell through.
A 3-year-old American girl, Abigail Mor Idan, was reportedly in her father's arms when he and her mother were killed by Hamas terrorists in Gaza. Abigail managed to crawl out from under her father's body before being kidnapped. Her older siblings witnessed their parents' murder. Abigail is currently being held hostage, along with other American and Israeli captives, by Hamas. The exact number of captives is unknown, but the Israeli government believes Hamas holds 239 hostages. The US is working towards the safe recovery of all individuals.
Mattel's Q3 revenue rose 9% to $1.9 billion, beating Wall Street expectations, thanks to the successful release of Barbie. Earnings per share came in at $1.08, surpassing analysts' estimates of 86 cents. However, Mattel shares slid 7% in after-hours trading due to a 13% decline in billings at the American Girl unit. Despite this, Mattel raised its full-year earnings guidance and attributed the strong performance to Barbie's success, including the release of the Barbie movie, which contributed to increased gross margins.
The Madison Children's Museum is hosting the final American Girl Benefit Sale this weekend at the Alliant Energy center, after more than three decades of the annual tradition. Organizers are expecting up to 7,000 fans from around the world to attend this weekend’s sale. The revenue from the sale has ended up going back into the community, with $22 million of revenue over those years into those agencies. Although a chapter in Madison is closing, fans are still waiting to hear what’s next.
