Mattel has won back the rights to sell toys inspired by Walt Disney characters from its main rival, Hasbro, according to a Wall Street Journal report.
Mattel (MAT) – Get Mattel, Inc. Report shares surged higher Wednesday following a report that suggested the group had won back a contract to sell toys inspired by Walt Disney DIS characters from rival Hasbro (HAS) – Get Hasbro, Inc. Report.
The Wall Street Journal reported that Mattel, which lost the licensing rights to Disney-inspired toys in 2016, will begin selling the items next year, with a lineup that includes characters from the blockbuster ‘Frozen’ movie franchise.
Microsoft, Tesla, Fed, Facebook ‘Libra’ And Markets – Five Things You Must Know
Mattel shares were marked 9% higher in pre-market trading Wednesday to indicate an opening bell price of $21.37 each. Hasbro shares, meanwhile, fell 1.65% to $94.00 each.
Mattel Reports Earnings Soon
Mattel is set to report December quarter earnings on February 9 following what the maker of Barbie and Hot Wheels forecast would be a solid holiday shopping season, with sales rising by 15% and earnings in the region of $900 million to $925 million.
Mattel said it was “very successful in working through global supply chain disruptions,” according to CEO Ynon Kreiz. “And it’s not that we were not impacted, but we did anticipate short supply and longer lead times, and factor that into our planning and took very specific mitigating actions.
Hasbro, meanwhile, is still reeling from the death of its former CEO, Brian Goldner, who passed on October 11 away just hours after taking medical leave for continued medical care following treatment for cancer in 2014.
Still, the seller of Monopoly, Play-doh and Nerf product reported stronger-than-expected third-quarter earnings in late October as its recent focus on digital gaming and entertainment continues to add to the toymaker’s top and bottom lines.
Hasbro’s total gaming category, including all gaming revenue, most notably, ‘Magic: The Gathering’ and ‘Monopoly,’ which are reported in the franchise brands portfolio, totaled $658.6 million for the third quarter, up 21% over the same period in 2020.
