Mattel (MAT) Launches Hot Wheels id, Eyes Sales Growth
Mattel, Inc. MAT is making every effort to revive its declining sales. The company has launched Hot Wheels id, the evolution of the Hot Wheels brand. It will feature Smart Track, Race Portal, and Hot Wheels id vehicles.
The new Hot Wheels id will provide users a mixture of both digital and physical play. Users can now track speed, count laps and have a virtual garage.
Chief Design Officer at Mattel, Chris Down said “While the brand is no stranger to digital play, this is the first time our fans will be able to keep track of top-speeds, races-won, and challenges-completed with Hot Wheels id die-cast in the physical world. Then, they can collect, manage and race the same cars in the digital world. This revolutionary Mixed Play experience enables kids of all ages to take on challenges like never before.”
Hot Wheels id has been available at Apple stores from June 14, 2019. While Hot Wheels id vehicle is available for $6.99, Hot Wheels id Race Portal and Hot Wheels id Smart Track Kit can be purchased for $39.99 and $179.99, respectively.
We believe Hot Wheels id will help the company to drive sales. Lack of innovative schemes for brand awareness and innovation has been hurting Mattel’s top line.
Other Strategic Efforts to Drive Sales
Recently, Mattel announced the extension of its global licensing agreement with Warner Bros. Consumer Products, which licenses the rights for all the intellectual properties in Warner Bros. Entertainment’s. Per the terms of the deal, Mattel will continue to be the toy licensee for DC in the girls, preschool, vehicles, games and novelty toy categories.
The agreement will help in the expansion of DC Universe franchises and production of new for DC Super Hero Girls. Mattel and DC have been partners for more than 15 years now. Apart from DC, Mattel has licensing agreement with Disney, Universal Pictures, Nickelodeon, WWE, Microsoft and others.
Moreover, in the beginning of 2019, Mattel entered into an agreement with Warner Bros. Pictures Group to work on a live-action feature film. This move is aimed at bringing the popular Barbie franchise to theaters. In the film, Academy Award-nominated actress Margot Robbie is likely to portray as Barbie. Robbie will co-produce the live-action feature film along with Tom Ackerley and Josey McNamara under her LuckyChap Entertainment Banner.
Year to date, the company’s shares have declined 18.6%, against the industry’s rally of 9.1%.
Zacks Rank & Key Picks
Mattel has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Hasbro, Inc. HAS, Electronic Arts Inc. EA and Glu Mobile Inc. GLUU, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hasbro, Electronic Arts and Glu Mobile has a long-term earnings growth rate of 10.7%, 16.5% and 15%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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