Mattel rides on the momentum Barbie Films, which reported quarterly results that beat Wall Street expectations, but the toymaker maintained its full-year sales outlook due to industry weakness and a weakening global economy.
Mattel said Wednesday that third-quarter earnings per share rose to $1.08, easily beating analysts’ average estimate of 86 cents. Sales rose 9.3% to $1.92 billion, beating forecasts of $1.84 billion, as shoppers snapped up other mainstays such as Barbie dolls and Hot Wheels cars.
Despite the increase in quarterly results, Mattel still expects full-year sales to be flat from 2022’s $5.44 billion. Chief Executive Ynon Kreiz said in a note that this reflected a tapering of spending triggered by the pandemic and tougher industry conditions following a weakening global economy. interview.
“The toy industry is well positioned for future growth, and we believe retailers are well prepared for the holidays,” Kretz said.
After the results were announced, Mattel’s shares fell 10% to $18.11 in after-hours trading. The stock was up 13% this year as of Wednesday’s close in New York.
Mattel raised its 2023 profit forecast by 5 cents per share and now expects profits of $1.15 to $1.25 per share, thanks in part to cost-cutting measures. Analysts expected full-year earnings of $1.20 per share on revenue of $5.49 billion, which was the average forecast compiled by Bloomberg.
Barbie“Star Wars,” directed by Greta Gerwig and starring Margot Robbie, is the highest-grossing movie of 2023 and has become a major public showcase for Mattel’s flagship toy.
Margot Robbie Barbie is selling particularly well, and management expects it to be a “hot toy” on Christmas shopping lists, Kreitz said. Hot Wheels is expected to set sales records for the sixth year in a row, and last season actually grew faster than Barbie.
Since its release in July, Barbie The film grossed more than $1.4 billion at the global box office and is Warner Bros.’ highest-grossing film of all time.
As a production partner on the film, Mattel receives a share of ticket sales and streaming revenue.Chief Financial Officer Anthony DiSilvestro said at a Goldman Sachs investor conference last month that he expected the film to produce Mattel’s sales this year are about $125 million.
Kreitz said earlier this year that Mattel would benefit more from the film’s success in the second half of the year as its popularity drives demand for dolls and other Barbie-branded products.
Overall, Mattel’s doll sales surged 24% in constant currency in the third quarter, as retailers began placing orders for the holiday season. Mattel said sales of Barbie dolls increased 16%, and the performance of the doll business was also driven by Disney and Monster High series products.
Barbie This is Mattel’s first theatrical release under a strategy developed by Kreiz when he became CEO in 2018. He’s looking to bring more of the company’s brands to the screen as movies or TV shows and is developing movies based on “Hot Wheels,” “Polly Pocket” and a dozen others.
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