Mattel Inc. Barbie brand dolls are displayed for sale at a Walmart Inc. store in Burbank, California, U.S., on Tuesday, Nov. 26, 2019. A PWC survey shows that 36% of consumers surveyed plan to shop on Black Friday. Deals will ultimately dictate where spending and visits go.
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Toymaker Mattel said Thursday that its sales jumped 47% as families spent more on toys for their children, helped by more disposable income due to government stimulus checks.
The company’s stock rose more than 8% in extended trading.
Typically, the first quarter is a weak period for toy sales, as it follows the influx of holiday sales during the previous quarter.
Mattel CEO Ynon Kreiz also credited the company’s turnaround efforts, and said it had grown its market share for three consecutive quarters.
“We are strengthening our position as a consistent leader in the toy industry,” he said. “We believe we are very well-positioned to improve profitability and accelerate topline growth in 2021 and beyond.”
Here’s what the company reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Losses per share: 10 cents adjusted vs. 35 cents expected
- Revenue: $874.2 million vs. $684.2 million expected
Mattel’s net loss narrowed to $115.2 million, or 33 cents per share, from a loss of $210.7 million, or 61 cents per share, a year earlier.
Excluding items, Mattel lost 10 cents per share, which is less than the loss of 35 cents per share expected by analysts surveyed by Refinitiv.
Revenue rose 47% to $874.2 million from $594 million a year ago, beating analysts’ expectations of $684.2 million.
Mattel said it planned to increase its forecast during a conference call with analysts.
“We believe we are well-positioned to gain momentum for the full year,” said CFO Anthony DiSilvestro, in a press release. “We are revising 2021 guidance to reflect our stronger-than-anticipated first quarter performance and updated outlook for cost inflation.”
Earlier this year, the company forecasted sales would rise by a mid-single digit percentage this year.
The company continued to see strong sales of dolls, with net sales of its American Girl brand rising 22%.
This is a breaking news story. Please check back for updates.