Mattel sales soared 47% as parents bought toys with stimulus checks, toymaker raises outlook

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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.
Bloomberg | Bloomberg | Getty Images

Toymaker Mattel said Thursday that its sales jump 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 7% in extended trading.

Mattel CEO Ynon Kreiz said the company has 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.

Read the full earnings release here.

This is a breaking news story. Please check back for updates.

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