Mattel reports that net sales of $1,026m represented an increase of 40% compared to the same period last year.
Mattel has reported a healthy set of second quarter 2021 financial results, which saw sales top $1b, beating analysts’ estimates for the period. Net sales increase by 40% as reported, and 36% in constant currency, versus 2020’s second quarter. For the first six months of 2021, Net sales were up 43% as reported, and 41% in constant currency, versus the prior year’s first six months.
Speaking in an earnings call after the results were announced, Ynon Kreiz, chairman and chief executive officer admitted that Mattel intends to raise prices in the run-up to Christmas as a result of higher costs. Ynon was quoted by the BBC as saying: “We haven’t broken out (which products will be affected), but this is in response to some of the inflationary pressures. We’re not the only ones who did it, in our industry everyone did – and no-one is surprised by [price increases]. We were able to leverage our size and partnerships that we have with our vendors and retail partners and mitigate some of these issues, so we did not have any impact on our business in the second quarter.”
Looking at performance by region in the second quarter, according to The NPD Retail Tracking Service, Mattel’s growth in EMEA exceeded the industry by 11%. In addition, POS growth outpaced the industry, with strong consumer demand across the portfolio. EMEA was up 54%, with POS increasing double digits.
Worldwide Gross Billings for all of Mattel’s key product sectors increased. Standouts included the Doll segment, up 51% as reported, primarily driven by growth in Barbie, American Girl, Spirit and Polly Pocket, while Vehicles was up 68% as reported, primarily driven by growth in Hot Wheels, Matchbox and Cars.
The Infant, Toddler, and Pre-school segment saw a turnaround, up 15% as reported, primarily driven by growth in Fisher-Price and Thomas & Friends, while Action Figures, Building Sets, Games and Other were up 32% as reported, primarily driven by growth in Jurassic World, Masters of the Universe, WWE and Mega.
Ynon Kreiz commented: “This was another exceptional quarter for Mattel, with outstanding consumer demand for our product. We believe we are in the strongest position we have been in many years to improve profitability and accelerate topline growth. Our overall performance this quarter and comprehensive topline growth is adding momentum to our transformation strategy. We are now firmly in growth mode and establishing Mattel as an IP-driven, high-performing toy company.”
Mattel shares traded over 5% higher in extended New York trade after the earnings announcement was made yesterday afternoon.