Barclays Slashes Mattel Outlook on Sagging Sales, Unclear Valuation
Mattel's shipments in every single brand except for its Entertainment unit dropped in the second quarter.

Barclays analyst Felicia Hendrix slashed earnings expectations for Mattel Inc (MAT) , citing declining shipments, lean retail inventories and unclear valuation for the California-based toy company.

Hendrix said she sees 2017 earnings down 5.7% and 2018 earnings down 4.8%. Valuing the company is difficult, as "there is no visibility as to how long it will take for the new CEO to lead the company to a better place."

"The concept of normalized earnings is meaningless to us when every management team in the past 17 years has caused this company to underperform," Barclays said.

Mattel's shipments in every single brand except for its Entertainment unit dropped in the second quarter. Entertainment shipments were driven by the "Cars 3" movie and even those were on the low side of expectations, Hendrix noted. Lean retail inventories suggest retailers are buying less than they did last year.

Mattel stock traded down almost 8% at Friday's close. It's down over 28% since the start of the year.

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