Mattel says it ‘successfully navigated’ supply-chain snags
Mattel Inc. stock jumped more than 6% late Thursday after the toy maker reported quarterly sales and profit that topped Wall Street expectations and raised its sales guidance for the year, counting on a “strong holiday season” ahead.
Mattel MAT, 0.25% earned $813 million, or $2.29 a share, in the third quarter, compared with earnings of $311 million, or 89 cents a share, in the year-ago period. Adjusted for one-time items, the toy maker earned 84 cents a share.
Sales rose 8% to $1.76 billion, from $1.64 billion a year ago, and included a 12% increase in North America, driven by rising sales of action figures, games, dolls, toy vehicles and other toys, the company said.
Analysts polled by FactSet expected adjusted earnings of 72 cents a share on sales of $1.69 billion.
“This was another strong quarter for Mattel, with increased consumer demand for our products and results exceeding expectations,” Chief Executive Ynon Kreiz said in a statement. Mattel “successfully navigated ongoing global supply-chain disruption,” grew its sales and continued to gain market share, Kreiz said.
“We expect to grow for the balance of the year and have a strong holiday season,” the executive said.
Mattel guided for full-year net sales up 15% this year, compared with a previous guidance of sales growth between 12% and 14%. Mattel’s 2020 sales reached $4.6 billion.
Shares of Mattel have gained about 17% so far this year, compared with gains of around 21% for the S&P 500 index SPX, 0.02%.