Zacks Industry Outlook Highlights: Electronic Arts, Mattel, Take-Two Interactive, and JAKKS Pacific – Yahoo Finance

January 10, 2022 by No Comments

For Immediate Release

Chicago, IL – January 10, 2022 – Today, Zacks Equity Research discusses Electronic Arts Inc. EA, Mattel, Inc. MAT, Take-Two Interactive Software, Inc. TTWO and JAKKS Pacific, Inc. JAKK.

Industry: Toys & Games

Link: https://www.zacks.com/commentary/1848879/4-stocks-worth-a-look-from-a-prospering-toys-games-industry

The Zacks Toys – Games – Hobbies industry is benefiting from robust demand for smart toys, STEM toys (Science, Technology, Engineering and Math), sports toys, fashion dolls and accessories. The industry participants have been undertaking efforts on the digital front and focusing on the better execution of marketing and promotional initiatives to drive growth. The industry players, including Electronic Arts Inc., Mattel, Inc., Take-Two Interactive Software, Inc. and JAKKS Pacific, Inc. are likely to gain from the afore-mentioned trends.

Industry Description

The Zacks Toys – Games – Hobbies industry comprises companies that design, manufacture and sell various games and toys. While traditional toymakers primarily focus on marketing and selling action figures, accessories, dolls, youth electronics and arts and crafts, other industry players also develop and market content and services on video game consoles, personal computers and mobile.

Some of the industry participants offer video game platforms, playing cards, Karuta and other products along with handheld and home console hardware systems and related software. A few companies also develop and operate retail and online military simulation games and provide multiplayer and single-player games.

3 Trends Shaping the Future of Zacks Toys – Games – Hobbies Industry

Pandemic Driving Demand for Toys:Although coronavirus-induced shutdowns have hurt most industries, toymakers have been gaining from the same. With kids stuck at home, parents have been buying toys in bulk to keep the children occupied and away from the TV while they work.

While the toy-buying spree continues across the country, online sales of board games and building sets have also been on the rise. Per the NPD Group, U.S. toys sales increased 16% in 2020. According to The NPD Group, sports toys, fashion dolls and accessories, building sets, games and summer seasonal toys sales increased 31%, 56%, 26%, 29% and 24%, respectively. Per The NPD Group, U.S. toy industry dollar sales rose 17% or $2.3 billion between January and September 2021.

During the same timeframe, both unit sales and average selling price (ASP) rose during the period, up 12% and 4%, respectively. In third-quarter 2021, dollar sales rose 11%. Most of the toy companies are focused on bolstering online business. The industry is anticipated to perform robustly in 2022.

STEM Toys Gaining Popularity: Amid declining sales of traditional toys, robust demand for STEM toys has been quite a relief. The Asia/Pacific region has emerged as a major growth driver for STEM toys. Countries like India, Malaysia, Singapore and Thailand are witnessing rising demand for STEM toys. Parents are focusing more on educational toys to teach their children during the pandemic.

Per a Technavio report, educational toys are likely to grow $28.4 billion during 2021-2025, witnessing a CAGR of more than 14%. The APAC region is likely to contribute growth of 36%.

Industry players have been capitalizing on new distribution methods, development of digital-play components, exploration of ventures with other industries and focusing on international expansion to drive growth. The industry has enormous growth potential in China and Brazil as both countries have a massive population of kids aged zero to 14 years.

Shipments Disruption & High Costs Remain Concerns: …….

Source: https://finance.yahoo.com/news/zacks-industry-outlook-highlights-electronic-144502197.html

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