After the Learning Co. debacle, Mattel hasn't abandoned interactive toys, but it's now licensing its brands to technology partners to avoid bearing so much financial risk. One helpful sign, which isn't Eckert's doing, is the turnaround among the retailers that sell Mattel's toys. It beat analysts' earnings expectations in the last quarter. Sales were up 2 percent for the year, which isn't bad considering overall industry sales fell 1.4 percent because there were no white-hot toys and consumers weren't spending, among other things. Despite Mattel's decent holiday performance, Eckert has been careful not to overpromise to investors.
Industry analysts look for the company to boost sales modestly over the next three to five years.
Earnings should grow by 10 percent to 15 percent over the same period. That's a stronger performance than the rest of the toy industry is expected to deliver. Sure, it's a long way until Christmas, when kids will judge this year's Toy Fair offerings. But the company's recent strong sales performance bodes well for the rest of the year, says Melissa Williams, analyst with Gerard Klauer Mattison. So it could be good news for Mattel investors if Eckert and Barbie live happily ever after.