EXCLUSIVE: Holiday retail trends - Linda Bolton Weiser takes a look at the toy and beauty industries
According to Linda Bolton Weiser, Managing Director of D.A. Davidson & Co., the recent holiday season has seen some interesting trends in the toy and beauty industries.
Toy Story: Weiser said on Benzinga's "Stock Market Movers" show on Wednesday that ahead of the 2021 holiday season, when there were disruptions in the supply chain resulting in widespread toy shortages, the 2022 season was bustling with inventory.
D.A. Davidson conducts an exclusive Choice survey each year around Christmas, looking at the prices and availability of key "hot" toys at various retailers.
The company found that the shelves were not as empty as they were during the 2021 season, with only a few empty pockets with evergreen markings such as " Barbie" and "Hot Wheels", which seemed to have shortages due to products flying off the shelves.
Also read: What happened at Target over the holidays?
Asked about Hasbro, Inc. HAS, Weiser noted that the company has changed over the years, with 60% of revenue coming from toys and 40% from profit.
Despite some negative feedback regarding "Magic the Gathering" and "Dungeons & Dragons", Weiser believed there would be strong growth for Wizards and the digital games industry in the future .
The analyst mentioned that Mattel Inc MAT, back in the Disney princess doll business, should give the company's stock a boost.
Weiser explained Mattel, unlike other toy companies, has its own factories in Asia that manufacture fashion dolls, which are one of the most profitable products in the world. business. Weiser thought Mattel would do a great job with the dolls and it was a growth opportunity for the company to build and grow internally over the next few years.
Weiser was also asked about Funko Inc FNKO, a company that recently landed an investment from eBay Inc EBAY and signed an exclusive partnership with them.
Weiser believed this partnership was important for future growth and noted that the investors who served on the board are known to be very active and could make their mark on the strategy of Funko.
She added that Funko should start developing its own intellectual property and products.
An eye for beauty: The beauty space was also robust, particularly in the area of fragrances. Consumers discovered more experimentation and the benefits of fragrances as a mood booster during the COVID-19 pandemic and that experimentation continued post-pandemic, Weiser said.
Weiser also mentioned that elf Beauty Inc ELF is doing exceptionally well.
Weiser said Elf Beauty wants to gain control of market share from companies such as the bankrupt Revlon and become the number one mass color company in the United States .
Weiser noted that the recent short report on Planet Fitness Inc PLNT was baseless, and that the company had an excellent franchise model, with a mid-teen growth rate that 'it could achieve over the next few years.< /p>
She also said that claims in the short report about Planet Fitness making it difficult for members to cancel their memberships were not true and that the company has a much-appreciated policy in matter of subscription cancellation.
Read Next: Why This Planet Fitness Analyst Says The Short Seller's Allegations of Unethical Business Practices Lack Fundamentals
Photo: Shutterstock
According to Linda Bolton Weiser, Managing Director of D.A. Davidson & Co., the recent holiday season has seen some interesting trends in the toy and beauty industries.
Toy Story: Weiser said on Benzinga's "Stock Market Movers" show on Wednesday that ahead of the 2021 holiday season, when there were disruptions in the supply chain resulting in widespread toy shortages, the 2022 season was bustling with inventory.
D.A. Davidson conducts an exclusive Choice survey each year around Christmas, looking at the prices and availability of key "hot" toys at various retailers.
The company found that the shelves were not as empty as they were during the 2021 season, with only a few empty pockets with evergreen markings such as " Barbie" and "Hot Wheels", which seemed to have shortages due to products flying off the shelves.
Also read: What happened at Target over the holidays?
Asked about Hasbro, Inc. HAS, Weiser noted that the company has changed over the years, with 60% of revenue coming from toys and 40% from profit.
Despite some negative feedback regarding "Magic the Gathering" and "Dungeons & Dragons", Weiser believed there would be strong growth for Wizards and the digital games industry in the future .
The analyst mentioned that Mattel Inc MAT, back in the Disney princess doll business, should give the company's stock a boost.
Weiser explained Mattel, unlike other toy companies, has its own factories in Asia that manufacture fashion dolls, which are one of the most profitable products in the world. business. Weiser thought Mattel would do a great job with the dolls and it was a growth opportunity for the company to build and grow internally over the next few years.
Weiser was also asked about Funko Inc FNKO, a company that recently landed an investment from eBay Inc EBAY and signed an exclusive partnership with them.
Weiser believed this partnership was important for future growth and noted that the investors who served on the board are known to be very active and could make their mark on the strategy of Funko.
She added that Funko should start developing its own intellectual property and products.
An eye for beauty: The beauty space was also robust, particularly in the area of fragrances. Consumers discovered more experimentation and the benefits of fragrances as a mood booster during the COVID-19 pandemic and that experimentation continued post-pandemic, Weiser said.
Weiser also mentioned that elf Beauty Inc ELF is doing exceptionally well.
Weiser said Elf Beauty wants to gain control of market share from companies such as the bankrupt Revlon and become the number one mass color company in the United States .
Weiser noted that the recent short report on Planet Fitness Inc PLNT was baseless, and that the company had an excellent franchise model, with a mid-teen growth rate that 'it could achieve over the next few years.< /p>
She also said that claims in the short report about Planet Fitness making it difficult for members to cancel their memberships were not true and that the company has a much-appreciated policy in matter of subscription cancellation.
Read Next: Why This Planet Fitness Analyst Says The Short Seller's Allegations of Unethical Business Practices Lack Fundamentals
Photo: Shutterstock
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