Mattel Inc. (MAT) has added another unfortunate incident to its recent string of negative news. In addition to concerns about higher tariffs and a disappointing third-quarter revenue report, the toy company is facing a recall of its ‘Wicked’ dolls.
The ‘Wicked’ dolls, resembling characters portrayed by Cynthia Erivo and Ariana Grande in the upcoming film slated for release on November 22, were released by Mattel. However, an unfortunate error on the doll packaging led to the wrong website being printed. Instead of directing consumers to the official ‘Wicked’ movie website, the link printed on the packaging led to an adult entertainment site.
Mattel acknowledged the mistake in a statement, stating, “We deeply regret this unfortunate error and are taking immediate action to remedy this.” The company urged parents to discard the packaging or obscure the link and contact Mattel Customer Service for further information.
Social media users quickly pointed out the error, highlighting the link’s association with Wicked Pictures, an adult film company founded in 1993. Coincidentally, ‘Wicked’ became a focal point in Donald Trump’s hush money trial, as the company hosted a celebrity golf tournament where Trump previously met adult actress Stormy Daniels.
Mattel is expected to release new versions of the dolls with the corrected website. However, the faulty boxes have already begun appearing on the auction site eBay.
The timing of this error couldn’t be worse for Mattel, especially considering the company’s focus on children’s toys. Concerns about higher tariffs under President-elect Donald Trump further add to the company’s challenges. It remains to be seen whether Mattel will pass on these higher costs to consumers or absorb the hit on their margins. It’s worth noting that Mattel was among the worst-performing S&P 500 stocks during Trump’s first year in office in 2017, experiencing a 44% decline that year.
While Mattel grapples with these setbacks, Universal Pictures, the studio behind the ‘Wicked’ film, is optimistic about its prospects. The movie has already generated strong pre-sale ticket sales, fueling high expectations. Boxoffice Pro estimates that the film could open to a domestic box office gross of $100 million to $125 million, potentially making it one of the highest-grossing opening weekends of the year.
This ‘Wicked’ film is the first of two parts in the ‘Wicked’ story. Universal’s parent company, Comcast Corporation (CMCSA), currently boasts three of the top 10 grossing films domestically in 2024: ‘Despicable Me 4’, ‘Twisters’, and ‘Kung Fu Panda 4’, ranking third, sixth, and eighth, respectively. A strong opening for ‘Wicked’ could potentially give the studio another top 10 hit for the year.
Mattel stock is currently trading at $19.63, within a 52-week trading range of $15.87 to $20.60. Year-to-date, Mattel stock is up 4.6%. Comcast stock is trading at $44.24, within a 52-week trading range of $36.43 to $47.11. Comcast stock has seen a 1.3% year-to-date gain.
