The El Segundo-based toy manufacturer on Oct. 22 posted net income of $316 million, or 91 cents per share, on revenue of $1.63 billion for the period.
Analysts had anticipated earnings of 38 cents per share and $1.46 billion in revenue.
The company’s net income jumped a whopping 348% compared to the same period in 2019 while revenue saw a 10% increase.
“This was a very strong quarter for Mattel,” Chief Executive Ynon Kreiz said in a statement. “We saw a major upswing in topline and a significant increase in profitability as we continued to make meaningful progress toward becoming an IP-driven, high-performing toy company.
“The toy industry, as a whole, grew significantly and continues to demonstrate its resilience in challenging economic times. Mattel’s growth outpaced the industry as we gained share in key markets around the world and achieved growth in each of our four regions,” he added.
Mattel’s net sales in North America reached $924.7 million, a 13% increase from the third quarter in 2019.
The dolls category contributed $328 million in gross revenue, a 31% increase. Infant, toddler and preschool toys totaled $255.3 million — a 7% decrease — while action figures, building sets and games category grew by 18% to $218.1 million.
International contributed $655.5 million in net revenue, an 8% uptick.
The company’s American Girl division, which had to close its namesake stores during the pandemic, posted $51.4 million in net sales, a 1% decrease from the year-ago period.
Mattel’s ecommerce sales grew approximately 50% in the quarter and now represent 30% of its point-of-sale transactions.
Cost cutting for the quarter included a 40% decrease in advertising to $103 million, while selling and administrative expenses decreased by $22.5 million, or 6%, to $328.9 million.
For the nine months that ended Sept. 30, net sales totaled $2.95 billion, a 2% decrease compared to the same period in 2019. The company has also slashed its losses by 97% to $3.9 million since Jan. 1.
Prospects look strong for the fourth quarter, according to Kreiz.
“Based on the (point of sale) momentum we are seeing, the low retail inventories and the early start of the holiday shopping season, we expect net sales and gross sales to grow in the fourth quarter,” he said.
Mattel Inc.
(NASDAQ: MAT)
(NASDAQ: MAT)
HEADQUARTERS: El Segundo
CEO: Ynon Kreiz
BUSINESS: Toy manufacturer and retailer
EMPLOYEES: 25,000
MARKET CAP: $4.5 billion
REVENUE: $4.5 billion in 2019
STORE COUNT: 20
