Shares of Barbie maker Mattel Inc. jumped as much as 12.02% after the company announced that it will soon produce Hello Kitty products.
In a June 4 release, Mattel said it entered into an international licensing agreement with Sanrio Inc., allowing it to design and develop a range of toys, dolls, games and other products inspired by Hello Kitty & Friends and Hello Kitty Cafe, as well as other Sanrio-trademarked characters.
Mattel, which also produces Hot Wheels and Fisher-Price-branded toys, will distribute the Sanrio-branded items in North America, Europe, Latin America, Australia and New Zealand starting in the fall of 2020.
Mattel's sales of Sanrio products could benefit from the upcoming Hello Kitty film that will be developed by New Line Cinema LLC, Sanrio and Flynn Picture Co.
Sanrio's portfolio also includes Gudetama, Keroppi, Chococat, Badtz-Maru, Little Twin Stars and My Melody, among others.
Mattel's stock closed up 11.71% at $10.78 after the announcement, while Sanrio was trading 9.84% higher in mid-afternoon trading in Japan at ¥2,624 on June 5.
As of June 4, US$1 was equivalent to ¥108.35.