NEWS

Mattel reports third quarter results

Published on: 26th October 2022

Mattel will provide annual guidance for 2023 on its 2022 Q4 and full year earnings call but still expects to achieve growth in 2023.

For the third quarter 2022, Mattel’s global Net Sales were flat as reported and up 3% in constant currency versus the prior year. Looking at the company’s performance across the first nine months of the year, Net Sales were up 10% as reported, and 13% in constant currency.

In the third quarter, Net Sales in the North America segment declined 3% as reported and in constant currency. Gross Billings in the North America segment declined 4% as reported and in constant currency, due primarily to declines in Infant, Toddler and Pre-school (including Fisher-Price and Thomas & Friends), Action Figures, Building Sets, Games and Dolls (including Barbie), partially offset by growth in Vehicles (including Hot Wheels).

Net Sales in the International segment increased 5% as reported, and 13% in constant currency. Gross Billings in the International segment increased 4% as reported, and 13% in constant currency. The increase in Gross Billings as reported was driven primarily by growth in Vehicles (including Hot Wheels), and Action Figures, Building Sets, Games and Other (including Lightyear and Jurassic World), partially offset by declines in Dolls (including Spirit and Barbie) and Infant, Toddler and Pre-school (including Fisher-Price and Thomas & Friends).

Mattel EMEA achieved another strong quarter of growth, with Gross Billings increasing by 8%. POS was up low-single digits, outpacing the industry.

With regard to Mattel’s previously stated 2023 goals, given the increased volatility in the market as well as the revised 2022 outlook, the company has decided to re-evaluate its expectations and will provide annual guidance for 2023 on its 2022 fourth quarter and full year earnings call. However, the company still expects to achieve top and bottom-line growth in 2023

Ynon Kreiz, chairman and CEO of Mattel, commented: “This was a good quarter for Mattel, with the ninth consecutive quarter of Net Sales growth in constant currency. We believe our fundamentals are strong and our world-class leadership team and global organization are executing with excellence. Our results reflect the resilience of our diversified portfolio and the success in executing our strategy, despite the challenging macro-economic environment. We look forward to the all-important holiday season, and believe we are on track to achieve another growth year for the company.”

This update follows an extremely strong set of second quarter results, which were announced in July.

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