While big toy companies virtually across the board saw sales increases and growth over the course of the pandemic, there is now a significant disagreement surrounding whether or not that growth will continue. On the one hand, Hasbro
Both Hasbro and Mattel released positive earnings reports at the end of February, but the two reports drastically different in tone.
According to Hasbro, the strong sales seen during the pandemic will wane in the coming months as consumers return to spending on travel and leisure.
"Hasbro is looking at real time data and they are also heavily informed by an economic view that we are entering a phase of some degree of uncertainty around consumers' willingness to digest inflation," Stephanie Wissink, analyst and managing director at Jefferies, told CNBC.
In addition to the end of the pandemic, analysts also suspect that Hasbro may be setting more modest goals for the coming years due to a transition in leadership: Chris Cocks recently replaced interim CEO Rich Stoddart as the new CEO of the company. Hasbro also recently lost the Disney
Mattel, meanwhile, is dreaming big. At a recent pre-recorded growth strategy presentation, the company said that it will be focusing on building up the presence of its IPs, including American Girl, Hot Wheels, Barbie, and Fisher-Price.
"Today, we are excited to update you on the significant progress we have made transforming Mattel into an IP-driven, high-performing toy company," Mattel CEO Ynon Kreiz said at the presentation. "As strong as 2021 was, 2022 is expected to be stronger."
Mattel's strategy centers around expanding its IPs into new markets and forms of entertainment, including consumer products, digital gaming, and films. Barbie was the company's "shining case study" on focusing on "brand purpose" to harness a beloved IP and explore new segments of the market.
"Evolution makes a brand relevant, but purpose makes a brand immortal," Richard Dickson, President and COO of Mattel, said in the presentation.
Mattel's future plans for Barbie include a live-action film, directed by Greta Gerwig and starring Margot Robbie. The company will also continue to produce animated Barbie films and non-toy merchandise. Mattel has also made its first foray into the non-fungible token market with a selection of one-of-a-kind Barbie NFTs sold at auction.
Unlike Hasbro, Mattel partners with third-party companies to create non-toy products rather than producing these items in-house. Analysts say this difference could be another reason for the disparity in the two companies' outlooks for the future.
