- Mattel reported earnings and revenue that came in higher than Wall Street’s expectations.
- Barbie sales grew 16% during the third quarter, riding the wave of the blockbuster movie.
- The company also increased its full-year profit outlook, saying it expects a strong holiday season.
Call it a Barbie boost.
Mattel on Wednesday said Barbie sales jumped 16% in the third quarter, riding the wave of the blockbuster movie. The “Barbie” film, released in July, is largely responsible for the bump, Mattel said. It is the highest-grossing film this year, clearing more than $1.4 billion worldwide.
“Our results benefited from the success of the Barbie movie, which became a global cultural phenomenon, and marked a key milestone for Mattel,” CEO Ynon Kreiz said in the toy maker’s third-quarter earnings release.
Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.08, adjusted vs. 86 cents, expected
- Revenue: $1.92 billion vs. $1.84 billion, expected
For the period ending Sept. 30, Mattel reported a profit of $146.3 million, or 41 cents a share, down from $289.9 million, or 80 cents a share, a year earlier. Adjusted for one-time items, per-share profit was $1.08.
Revenue rose 9% to $1.92 billion.
Despite the positive report, shares of Mattel fell about 6% in after-hours trading Wednesday. As of Wednesday’s close, shares were up over 12% so far this year.
“Barbie” marks Mattel’s first big step into a broader strategy of using its intellectual property to inspire other potential blockbuster movies.
Barbie isn’t the only Mattel brand seeing a substantial boost. Mattel said Hot Wheels sales jumped 22% when compared to the same three-month period last year. Earlier this year, car makeover competition series “Hot Wheels: Ultimate Challenge” premiered on NBC. Mattel also announced last year that a Hot Wheels film is in the works with Warner Bros., the studio behind “Barbie.”
The toy maker boosted its full-year adjusted earnings per share outlook to a range of $1.15 to $1.25, up from $1.10 to $1.20. The company also upped its gross margin guidance to 48% from 47%.
The company said during its earnings call Wednesday that it expects strong profit growth during the holiday quarter despite a volatile retail environment.
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Source: Business - cnbc.com
