Additionally, toy manufacturer, Mattel, Inc. (MAT, Financial) delivered its highest first quarter results on record for net sales and operating income. This strong performance benefitted from solid brand management, increased points of distribution and retailers stocking inventories to support product launches tied to upcoming theatrical releases. Management reiterated 2022 guidance and noted the company’s growth prospects for 2023 are attractive, particularly with the reintroduction of the Disney Princess and Frozen toy lines, as well as product support around the upcoming Barbie movie. Recent buyout speculation further complemented share price appreciation. We remain encouraged by management’s execution on its strategy to grow market share, improve profitability and generate higher levels of cash flow. We have strong conviction in the leadership team’s ability to transform MAT into an IP driven, high performing toy company.
From John Rogers (Trades, Portfolio) Ariel Fund second-quarter 2022 commentary.
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