Mattel Inc. had its biggest gain in 18 months on news that the toymaker is in preliminary talks with at least two private equity firms about a potential buyout.
Mattel mulls tapping into NFT craze after Barbie drives quarterly sales
By Uday Sampath Kumar
Reuters
(Reuters) -Mattel Inc will consider turning its collector brands into non-fungible tokens (NFTs), the toymaker said after posting a record 47% surge in quarterly sales as Americans snapped up Barbie dolls and Hot Wheels cars in the usually slow post-holiday months.
NFTs, a type of digital asset that exists on a blockchain, have exploded in popularity this year, with NFT artworks selling for millions of dollars and musicians such as the Kings of Leon rock group embracing them for their latest album.
California-based Mattel on Thursday forecast annual sales to rise 6% to 8% versus prior outlook for a mid-single-digit percentage increase. It also predicted strong sales for the holiday season this year.
Celebrating the holidays might be pretty ho-hum, but one area thatâs booming is toys.
After a terrible year of remote school, canceled birthday parties and little vacationing, parents and grandparents ridden with so-called âCOVID guiltâ are spending a lot more on puzzles, crafts and games. And this is setting up the U.S. industry for its best Christmas in years â and maybe ever.
âIâve been in the toy industry for 30 years, and sales are just about as good as Iâve ever seen them,â said Jay Foreman, chief executive officer of closely held toymaker Basic Fun. Retail purchases of his companyâs toys, including Tonka trucks, have been up more than 30% since August and show no signs of slowing down, he said. âToys are a way for parents to treat their kids when they are so worried about whatâs going on in the world.â
FAIRFIELD-SUISUN, CALIFORNIA
James Cavicchia, right, with his son Joseph, 12, checks out Christmas gifts he bought at Toys et Cetera store in Hyde Park in Chicago on Nov. 18, 2020. (Zbigniew Bzdak/Chicago Tribune
/TNS)
Parents feeling guilty about Covid-19 ignites boom in toy sales
Celebrating the holidays might be pretty ho-hum, but one area that’s booming is toys.
After a terrible year of remote school, canceled birthday parties and little vacationing, parents and grandparents ridden with so-called “Covid guilt” are spending a lot more on puzzles, crafts and games. And this is setting up the U.S. industry for its best Christmas in years and maybe ever.