Mattel Inc. Barbie branded dolls are displayed for sale at a Walmart Inc. store in Burbank, California, United States on Tuesday, November 26, 2019. A PWC survey shows that 36% of consumers surveyed plan to shop on black friday. The agreements will ultimately determine the destination of spending and visits.
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Toy maker Mattel said Thursday its sales jumped 47%, with families spending more on toys for their children, helped by higher disposable income thanks to government stimulus checks.
The company’s shares rose more than 8% under extended trading.
Typically, the first quarter is a weak time for toy sales, as it follows the surge in holiday sales in the previous quarter.
Mattel CEO Ynon Kreiz also praised the company’s turnaround efforts and said it has increased its market share for three consecutive quarters.
“We are strengthening our position as a constant leader in the toy industry,” he said. “We believe we are uniquely positioned to improve profitability and accelerate revenue growth in 2021 and beyond.”
Here’s what the company reported for the first quarter compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Losses per share: 10 cents adjusted against 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, after a loss of $ 210.7 million, or 61 cents per share, a year earlier.
Excluding items, Mattel lost 10 cents per share, less than the loss of 35 cents per share expected by analysts polled by Refinitiv.
Revenue rose 47% to $ 874.2 million from $ 594 million a year ago, beating analysts’ expectations of $ 684.2 million.
Mattel said it plans to increase its forecast during a conference call with analysts.
“We believe we are well positioned to build momentum for the entire year,” CFO Anthony DiSilvestro said in a press release. “We are revising our guidance for 2021 to reflect our stronger than expected first quarter performance and our updated outlook for cost inflation.”
Earlier this year, the company forecasted a single-digit percentage increase in sales this year.
The company continued to report strong doll sales, with net sales of its American Girl brand increasing by 22%.
Read the full version of the results here.
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