Toy company Mattel Inc (NASDAQ: MAT) reported second-quarter financial results after the market close Wednesday. Here are the key highlights.
The net sales beat a Street consensus estimate of $984.7 million, according to data from Zenger News Pro.
The company reported earnings per share of 10 cents in the second quarter, beating a Street consensus estimate of a loss of 2 cents per share.
North American segment sales were down 18% year-over-year; growth in dolls was mentioned as a strength area in the quarter.
International segment sales were down 3% year-over-year in the second quarter. Dolls and vehicles showed growth for the international segment during the quarter.
American Girl segment sales were down 16% year-over-year.
Gross billings for dolls were $441 million in the second quarter, up 10%.
“Mattel’s second quarter financial results were in-line with our expectations. We significantly increased free cash flow and continued to gain market share,” Mattel CEO Ynon Kreiz said. “Importantly, this moment will be remembered as key milestone in our company’s history with the release of the Barbie movie, our first ever major theatrical film.”
Mattel bought back $16 million in shares in the second quarter, which brings the six-month total of share buybacks to $50 million.
The company confirmed its previous guidance for the full fiscal year.
Mattel CFO Anthony DiSilvestro said the second quarter was negatively impacted by retailers managing inventory levels and industry softness.
“At this point, we believe the retail inventory correction is mostly behind us, and we look forward to meeting consumer demand for our product, as we enter the second half of the year and all-important holiday season. Given our year-to-date performance and outlook for the balance of the year, we are reiterating our guidance,” DiSilvestro said.
The strong box office performance of the “Barbie” movie is viewed as a catalyst by Mattel, with further monetization of the company’s library of brands ahead.
“The Barbie movie is a showcase for the cultural resonance of our IP, our ability to attract and collaborate with top creative talent, and the capabilities of our franchise management organization. This also speaks to the potential of Mattel Films and the significant progress of our strategy to capture the full value of our IP,” Kreiz said.
MAT Price Action: Mattel shares are down 1.5% to $21 in after-hours trading Wednesday versus a 52-week trading range of $15.36 to $24.37.
Produced in association with Benzinga
Edited by Saba Fatima and Maham Javaid
