Cautious Optimism For Mattel And Hasbro This Holiday Season Thanks To Barbie, Star Wars And More

For toy makers Hasbro, Inc. HAS and Mattel Inc. MAT, the holiday shopping season is the most critical time of the year. Although the holiday shopping rush is still a couple of months away, UBS analyst Arpine Kocharyan is reporting some positive preliminary channel checks.

“After a solid H1, retailers are cautiously optimistic on toy sales heading into [the] all-important holiday season, with summer months having seen a typical slowdown in sales, according to trade,” Kocharyan explains.

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For Mattel, Kocharyan notes the Barbie brand seems well-positioned ahead of Q4. UBS also reports a strong global roll-out of DC Super Hero Girls. Hot Wheels, Fisher-price and MEGA have also generated strong numbers so far this year ahead of the holiday season. Kocharyan even says that American Girl’s partnership with Toys “R” Us could be a future source of incremental revenue growth for Mattel. The company will look to reset its struggling Monster High brand with a new 2017 lineup.

For Hasbro, Kocharyan believes the Star Wars Rogue One product line is better than last year’s Star Wars lineup. Elena of Avalor sales are reportedly “on fire,” while both Play-Doh and NERF summer sales were strong as well. My Little Pony and My Littlest Pet Shop sales have disappointed, but Kocharyan notes that a new My Little Pony movie in 2017 should help turn things around next year.

So far in 2016, both Hasbro and Mattel have seen share prices rise more than 15 percent.