NEWS

Mattel posts strong third quarter results

Published on: 23rd October 2020

Net Sales rose by 10% over the past three months.

Mattel

The past quarter was a positive one for Mattel. The company’s sales rose by double digits, with growth primarily driven by North America and EMEA. Net Sales in the international market rose by 8%, while North America saw a 13% increase.

Commenting on the results, Ynon Kreiz, chairman and CEO of Mattel, stated: “This was a very strong quarter for Mattel. We saw a major upswing in topline and a significant increase in profitability as we continued to make meaningful progress towards becoming an IP-driven, high-performing toy company. The toy industry, as a whole, grew significantly and continues to demonstrate its resilience in challenging economic times. Mattel’s growth outpaced the industry as we gained share in key markets around the world and achieved growth in each of our four regions. Based on the POS momentum we are seeing, the low retail inventories and the early start of the holiday shopping season, we expect Net Sales and Gross Sales to grow in the fourth quarter. Looking to the full year, with continued operational savings and margin expansion, we expect to see strong net income and EBITDA growth and remain focused on creating long-term shareholder value.”

Most of Mattel’s core categories saw sales increases over the past three months. Worldwide gross sales for Dolls were $690.5m, an increase of 22%, primarily driven by growth in Barbie. According to NPD, Mattel was the number one Dolls manufacturer in the US, Europe, and Latin America, gaining share in all three regions. Gross sales for Vehicles were $369.4m, up 6%,  primarily driven by growth in Hot Wheels. Worldwide gross sales for Action Figures, Building Sets, Games and Other were $354.5m, up 14%, primarily driven by growth in Star Wars: The Child plush, card games including Uno, Jurassic World and Pictionary, partially offset by declines in Toy Story 4. However, Worldwide gross sales for Infant, Toddler and Pre-school were $404.1m, down 6%, primarily due to declines in Fisher-Price Friends and Thomas & Friends.

Gross sales in the International segment increased 7%, driven by growth in Dolls (including Barbie), Action Figures, Building Sets, Games and Other (including Scrabble , card games including Uno and Jurassic World, partially offset by Toy Story 4), and Vehicles (including Hot Wheels). This was partially offset by a decline in Infant, Toddler, and Pre-school (including Fisher-Price Friends).

According to a statement accompanying the results, Mattel’s top priority has been to protect the health and safety of employees and at the same time mitigate the disruption of the Covid-19 pandemic to the business. The company is said to be working closely with its retail partners on the challenge of meeting consumer demand heading into the holiday season and is mindful of the Covid-19 volatility and other macro-economic uncertainties, which could negatively impact performance. The statement also reaffirms that the company’s supply chain is fully operational as it “chases the extraordinary growth in consumer demand for our products.”

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