Mattel is positioned for a robust vacation season following an earnings growth fueled by the worldwide success of Barbie: The Film.
For the third quarter, Mattel reported a 9% spike in internet gross sales to $1.92 billion alongside good points in gross margin and working earnings. Moreover, the corporate repurchased $60 million in its personal shares and raised its 2023 steerage for adjusted gross margin, adjusted EBITDA, and adjusted earnings-per-share (EPS).
Mattel’s robust third quarter efficiency displays the profitable execution of our technique to develop Mattel’s IP-driven toy enterprise and broaden our leisure providing. Client demand for our product elevated within the quarter, and we continued to outpace the trade. Our outcomes benefited from the success of the 'Barbie' film, which grew to become a worldwide cultural phenomenon, and marked a key milestone for Mattel. We’re very effectively positioned competitively and anticipate to realize market share within the fourth quarter and full 12 months. I want to thank the complete Mattel group for his or her achievements, onerous work, and dedication to create shareholder worth.”
Regardless of dealing with a difficult 12 months, Mattel’s internet gross sales slid simply 5% within the first 9 months, offset by good points in Q3.
North American internet gross sales and gross billings grew 10% in Q3 versus the identical interval final 12 months. Barbie, alongside Disney Princess and Disney Frozen, drove development in Dolls whereas Sizzling Wheels fueled good points in Automobiles. Mattel notes that its development was partially offset by declines throughout its Motion Figures, Constructing Units, Video games, and Different class (primarily Motion Figures), and in Toddler, Toddler, and Preschool (primarily Thomas &
Associates).
Worldwide gross billings in Q3 noticed a 27% spike for Dolls (together with Barbie, Disney, and Monster Excessive) and an 18% acquire in Automobiles. Worldwide Gross Billings for Toddler, Toddler, and Preschool dipped 2% in Q3 whereas Motion Figures, Constructing Units, Video games, and Different fell 19%, primarily attributable to declines in Motion Figures tied to 2022 theatrical releases.
In the meantime, American Woman continues to say no, logging a 13% dip versus Q3 final 12 months.
Trying forward, Mattel expects internet gross sales for 2023 to land in a comparable spot when in comparison with 2022.
Now, the race is on to develop the subsequent entry into the potential Mattel cinematic universe. Following Barbie, quite a few movies are in growth, together with Sizzling Wheels, Matchbox, Wishbone, Barney, Magic 8 Ball, Rock ‘Em Sock ‘Em Robots, and the long-awaited Masters of the Universe.
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