PLAYTIME. Toymaker Mattel’s (MAT.O) stock rose as much as 11% on Friday after reporting a 47% yearly increase in first-quarter sales read more , its fastest growth in 25 years. Consumers kept buying Barbies through the pandemic. The bigger picture is that for providers of discretionary goods and services, the consumer is now the plaything. During a year of enforced parsimony, American households amassed excess savings Goldman Sachs analysts reckon could exceed 10% of GDP by mid-year. Several banks say credit-card spending is now above pre-pandemic levels read more . The likely result is a non-essential spending spree, from vacations to concert tickets to Mattel’s American Girl dolls. Makers of discretionary goods in the S&P 500 Index now trade on almost the same year-ahead price-to-earnings multiple as producers of staples like toothpaste and breakfast cereal. True, it"s not quite free money. Mattel said input costs were rising, and firms risk boosting investment to meet a demand surge that’s only temporary. Still, the toybox is open, and there’s $2 trillion to play with. (By John Foley) On Twitter http://twitter.com/breakingviews Earlier in Capital Calls:ALL TO PLAY FOR. Video game developer CD Projekt (CDR.WA) has impressed gamers and critics alike with its bold storytelling. Now the $4.3 billion Polish company is keeping investors on tenterhooks as it attempts to turn around its flagship new title, “Cyberpunk 2077”, whose bug-riddled release knocked a third off its market value in December. Delayed results released on Thursday demonstrated the company’s extraordinary profitability: it reported operating profit of 1.2 billion zlotys ($306 million) on revenue of 2.1 billion zlotys. But its ability to continue to monetise “Cyberpunk” is no clearer than before. Chief Financial Officer Piotr Nielubowicz told analysts that the game accounted for about three-quarters of revenue at CD Projekt’s main gaming division, implying it brought in two-thirds of the group total. Assume “Cyberpunk” revenue falls by a third, in line with the drop-off following previous hits. If other revenue remains flat, CD Projekt’s enterprise value is about 12 times this year’s sales, double the multiple of bigger rivals Activision Blizzard (ATVI.O) and Electronic Arts (EA.O). Investors are staying plugged in for now. (By Oliver Taslic)AMUSE-BOUCHE. Gallic chefs know how to serve up a storm. Paris-listed SEB (SEBF.PA) is no different. Shares in the 8 billion euro cookware maker jumped by 6% on Friday, prompted by a surge in wannabe pasta and bread makers during lockdowns. First-quarter revenue rose to 1.9 billion euros – 31% higher than in the same period last year, more than offsetting a sharp fall in demand from professional cooks. The owner of the Tefal and Moulinex brands raised its full-year sales guidance to a soufflé-like 10% rise. The boom in amateur cookery may well have longer to run as restaurants struggle to reopen. If boss Thierry de La Tour d’Artaise meets his top-line aim, then SEB should produce about 760 million euros in operating profit, assuming a 10% operating margin. On that basis the shares, which including debt are valued at 13 times forward operating profit, still trade at a discount to Italy’s De’Longhi (DLG.MI) and U.S.-listed Newell Brands (NWL.O). Shareholders may have more tasty appetisers to come. (By Christopher Thompson)SHOE FITS. When it comes to stock-market fashion, Diego Della Valle’s loafer-maker Tod’s (TOD.MI) has been downright dowdy, declining a third over the past five years compared to puffy-jacket manufacturer Moncler’s (MONC.MI) 250% surge. But the shoe is on the other foot of late: Tod’s turnaround hopes have propelled the shares nearly 40% higher this year while Moncler has languished. LVMH’s (LVMH.PA) purchase on Thursday of 6.8% of Tod’s from Della Valle , building Bernard Arnault’s conglomerate’s stake to 10%, follows the investor-titillating appointment of Instagram celeb Chiara Ferragni to its board two weeks ago read more . Moncler meantime reported first-quarter results which emphasised its dependency on the lockdown-stricken European market. It’s understandable that Tod’s long-suffering shareholders would find succour in LVMH’s interest. But given Arnault’s penchant for creeping control, nickel-and-diming and browbeating his targets into submission – on full display in last year’s Tiffany deal – investors should be wary. To wit: LVMH snagged its latest Tod’s stake at a 10% discount. Caveat emptor lux. (By Rob Cox) On Twitter http://twitter.com/breakingviews Earlier in Capital Calls:OVER-INSURED. Chubb (CB.BN) Chief Executive Evan Greenberg went back to rival Hartford Financial Services (HIG.N)two more times after an initial unsolicited offer of $65 per share in March. Hartford said on Thursday it had rejected those offers too – at $67 and $70 a share – and suggested it is worth more. Breakingviews reckons synergies from a merger might be worth around $7 billion . That means in theory they could justify a premium of about $20 per Hartford share. So far, Chubb’s best offer is about $15 above Hartford’s undisturbed value, nearly a 30% premium. On that simple math, Chubb has room to go to around $75. The $74 billion company has said, however, that it will be disciplined and investors have sent its shares down around 5% since March. And some analysts peg Hartford’s worth at $80 per share or more. In a conservative industry, Greenberg is already out on a limb making an unsolicited bid. It might be a step too far to bridge the gap. (By Jennifer Saba) On Twitter http://twitter.com/breakingviews