Mattel Inc.’s branded Barbie dolls will go on sale Tuesday, November 26, 2019 at a Walmart Inc. store in Burbank, California, United States. A PWC survey shows that 36% of consumers surveyed plan to shop on Black Friday. Offers ultimately determine where expenses and visits go.
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Toy maker Mattel said Thursday its sales nearly doubled as families spent more on toys for their children, aided by higher disposable income from government economic reviews.
The company’s stock rose more than 7% in expanded trading.
Typically, the first quarter is a weak period for toy sales as it follows the influx of sales during the holiday quarter.
Ynon Kreiz, Mattel’s CEO, also recognized the company’s turnaround efforts, saying it had increased its market share for three consecutive quarters.
“We are strengthening our position as a consistent market leader in the toy industry,” he said. “We believe we are very well positioned to improve profitability and accelerate revenue growth in 2021 and beyond.”
The company reported for the first quarter, versus Wall Street expectations, based on an analyst survey by Refinitiv:
- Loss per share: 10 cents adjusted compared to 35 cents expected
- Revenue: $ 874.2 million versus $ 684.2 million expected
Mattel’s net loss decreased from a loss of $ 210.7 million, or 61 cents per share, last year to $ 115.2 million, or 33 cents per share.
Ignoring items, Mattel lost 10 cents per share, which is less than the 35 cents per share loss that analysts surveyed by Refinitiv expect.
Revenue rose 47% from $ 594 million last year to $ 874.2 million, exceeding analysts’ expectations of $ 684.2 million.
The company has continued to see strong doll sales recently, with net sales for its American Girl brand increasing 22%. Barbie, Mattel’s best-known brand, has also grown in popularity due to new product launches and innovations.
“Barbie’s cultural relevance has never been so strong,” said Richard Dickson, president and chief operating officer of Mattel. “We have focused on diversity, inclusivity and social impact and this has been reflected in the success of fashionistas who have also seen double-digit increases.” He added that products like Color Reveal and Barbie Extra grew incrementally in the first quarter.
During a conference call with analysts, Mattel said sales will grow 6% to 8% on a currency-neutral basis this year. Previously, the company was aiming for mid-single-digit sales growth this year.
Not only does the higher forecast reflect strong sales in the first quarter, but the company also said it was “a strong start to the second quarter”.
“We believe we are well positioned to gain momentum for the full year,” said CFO Anthony DiSilvestro in a press release.
Additionally, Mattel expects higher than expected cost inflation, with plastics and ocean freight being cited as two examples.
Read the full results publication here.