Week to date, shares of Mattel (NASDAQ: MAT) were down by 13% as of 9:50 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence.

The weak macroeconomic backdrop over the holidays caused Mattel's turnaround to take a detour. The company delivered fourth-quarter results earlier this week that were below analysts' consensus estimates. Management also expects continued weakness in consumer spending in 2023, but there's still more upside here as it executes its turnaround plan.

The toy maker's stock has more than doubled since hitting bottom at the start of the pandemic in 2020. Management's turnaround strategy, which includes cost-cutting measures and efforts to improve revenue growth, has gone to plan so far, but the soft consumer spending environment proved too much for the typically resilient toy industry during the holidays.

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Source Fool.com