NEW YORK (TheStreet) -- Mattel (MAT) will begin to sell its American Girl brand at Toys "R" Us toy stores. The multi-year partnership will expand American Girl's base nearly sixfold, according to the Wall Street Journal.
WellieWishers, the brand's newest doll line, will be available at Toys "R" Us beginning September 4 to September 10.
Additionally, Toys "R" Us will be the only U.S. retailer to have American Girl shop-in-shops in certain stores starting in late October. Each shop-in-shop will include Truly Me dolls, doll outfits and accessories as well as WellieWishers.
"Partnering with a top retailer like Toys 'R' Us allows us to meet our customers where and when they want to shop and to take our timeless life lessons to even more girls," Katy Dickson, president of American Girl, said in a statement.
Sales of the American Girls brand were down 19% year-over-year in the most recent quarter, El Segundo, CA-based Mattel said in its second-quarter earnings. The toy maker blamed the decline on its Truly Me doll line, doll outfits and accessories and fewer promotional activity, but pointed to "encouraging early response" to Wellie Wishers, the Journal reports.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Mattel's strengths such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: MAT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.