Home Finance Mattel posts surprise profit as retailers load up on Barbies, Hot Wheels

Mattel posts surprise profit as retailers load up on Barbies, Hot Wheels

by Enochadmin

April 27 (Reuters) – Mattel Inc (MAT.O) reported a shock quarterly revenue and beat estimates for gross sales, extending a powerful run for the reason that pandemic, as retailers restocked the toymaker’s Barbie and Scorching Wheels manufacturers following stock shortfalls over the vacation season.

The corporate’s shares, which closed up practically 11% in common buying and selling on Wednesday on reviews of buyout curiosity from companies together with Apollo International Administration Inc (APO.N) and L Catterton, rose about 3% in prolonged buying and selling.

“Following such a powerful vacation interval, retailers have been out of inventory, so that they restocked extra for the primary quarter, and nonetheless count on to develop in second quarter,” Chief Govt Ynon Kreiz informed Reuters.

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Delivery delays, manufacturing unit shutdowns and associated provide chain snarls had delayed the arrival of many merchandise throughout the all-important vacation buying season, regardless of corporations’ efforts to tug ahead deliveries and reroute items.

The second quarter has began sturdy, Kreiz added, with demand boosted by motion figures and video games based mostly on main upcoming motion pictures together with “Jurassic World: Dominion”, “Lightyear” and “Minions: The Rise of Gru”.

The corporate’s gross margin declined 70 foundation factors within the first quarter from a yr earlier, as value hikes didn’t cushion the blow from hovering enter prices and transportation bills.

Nonetheless, the Uno playing cards maker reported an adjusted revenue of 8 cents per share, whereas analysts on common had anticipated a lack of 4 cents, in keeping with Refinitiv IBES.

Total gross billings for Barbie, Mattel’s greatest model, rose 8% within the quarter, whereas they jumped 31% at Scorching Wheels.

Even in a seasonally sluggish first quarter, web gross sales surged 19% to $1.04 billion, trouncing analysts’ common estimate of $918 million.

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Reporting by Deborah Sophia in Bengaluru; Enhancing by Sriraj Kalluvila

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