Mattel's shares rose more than 4% after Thursday's closing bell as the company generated quarterly sales that declined across the board. Results were still better than feared as corona virus shutdown increased industry-wide sales.
The toy company reported a loss of 26 cents per share excluding items on sales of $ 732 million. According to refinitive data, analysts had expected a loss per share of 34 cents on sales of $ 679 million.
Net sales of the company's toys declined 15% year over year, Mattel said.
Mattel is known for his leadership role in the doll category – his flagship Barbie doll has been a welcome sales driver in recent quarters. Sales of the fashion doll increased by 7% in the last quarter, but this was not enough to boost the doll category, where sales decreased 5% compared to the same quarter of the previous year.
Mattel's other categories saw steep sales declines:
Infant, toddler and preschool fell by 21% vehicles slid by 26% action figures, construction kits, games etc. slowed by 12%
"We entered the second quarter with significant retail and closure challenges and had to accept a full quarter of the COVID 19 impact, but we have demonstrated our execution skills and brand resilience," said Ynon Kreiz, CEO of Mattel, in a statement. "As sales declined, they exceeded our expectations, particularly in North America, Barbie and Games, where we saw sales increase."
The company's gross margin improved to 43.8% in the quarter over the previous year.
Mattel's sluggish sales stand in stark contrast to the overall success of the toy industry after the coronavirus pandemic. In the first six months of the year, industry-wide toy sales grew by 16%, according to the NPD group, as parents tried to keep children at home.
The only category that didn't benefit from the rising tide were action figures. Without film releases, the demand for these toys has waned. Not to mention that the category faces tough comparisons to 2019, launching toys that are tied to "Avengers: Endgame" and "Toy Story 4".
Dolls also had a lot of headwind when their parents became interested in games, puzzles, handicraft sets and outdoor toys to reassure their home-bound children.
Many of Mattel's top brands belong to the categories of action figures and dolls. American Girl sales decreased 16%, and Enchantimals and Polly Pocket sales also decreased.
Vehicles also belong to this category at this time. Mattel's Hot Wheels brand saw a 22% drop in sales and Fisher-Price and Thomas and Friends a 21% drop.
This is the latest news. Please try again.