Holiday Season Set to Shine for Mattel As Company Nimbly Pivots Supply Chain Efforts

Mattel continues to harvest gains from its turnaround, delivering above break-even operating margins starting in 2019 and set to reach 13% in 2021. We expect Mattel to produce further adjusted operating margin expansion ahead, helped by the execution of its $250 million cost-saving program. Furthermore, the company's shift to a capital-light strategy should offer structurally lower capital and operating expenditures than in the past, supporting profit growth while allowing for investment in product innovation.