Publicly traded toy companies in Los Angeles County saw their shares get knocked around during the recent holiday season.
Mattel Inc., the El Segundo toymaker behind Barbie and Hot Wheels, saw its stock price drop by a fraction of one percent since last year when it closed at $18.50 on Jan. 8 a year ago and a closing price of $18.43 on Jan. 8.
Shares in Mattel closed at $18.43 on Jan. 8.
Meanwhile, Jakks Pacific Inc. in Santa Monica has seen an increase of nearly 15% in its share price after it announced its third quarter earnings after the market closed on Oct. 30. The price then dropped to close at $29.93 on Nov. 1, a decrease of more than 5% from the close of $31.55 the day before.
In the past year, the company’s stock has lost 21% of its value, going from a close of $36.01 on Jan. 8 of last year to a close of $28.44 on Jan. 8 of this year.
Shares in Jakks closed at $28.44 on Jan. 8.
Earning results
In a conference call with analysts from late October to discuss third quarter financials, Mattel Chief Executive Ynon Kreiz said he expected a good holiday season for Mattel with more retail support, additional shelf space, greater representation across major holiday catalogs and increased marketing and promotion compared to the prior year.
“We expect top-line growth in the fourth quarter, driven by a good holiday season, market share gains…and are well positioned for long-term growth and shareholder value creation,” Kreiz said during the call.
Mattel reported on Oct. 23 an adjusted net income of $584 million ($1.14 a share) for the quarter ending Sept. 30, compared with adjusted net income of $580 million ($1.08) in the same period of the previous year. Revenue dropped by 4% from the third quarter of the prior year to just more than $1.8 billion.
Jakks also reported its second quarter earnings in October.
For the quarter ending Sept. 30, the toymaker reported adjusted net income of $54 million ($4.79 a share) compared with adjusted net income of $50.1 million ($4.75) in the same period of the previous year. Revenue grew by 4% from the third quarter of the prior year to $322 million.
Chief Executive Stephen Berman said during a conference call with analysts that the third quarter was an important one for Jakks because it always is the highest sales quarter and by extension generates a lot of activity.
“We always try to deliver as much of our second half volume in Q3 to mitigate full year risk and to ensure customers and shelves are set for the holidays,” Berman said during the call.
The company’s November and December calendars are filled with product placement at retail for a broad portfolio of businesses, Berman said.
Among the new product that reached store shelves during the holiday season are the Super Mario Course Complete Playset and a jungle gym that comes in three different branded versions – Fisher-Price, Paw Patrol and Minnie Mouse, he added.
