Boosted by more disposable income from families who cashed in their stimulus checks, toymaker Mattel Inc. (MAT, Financial) noted after the closing bell on Thursday that its sales nearly doubled during the first quarter.
For the three months ended March 31, the El Segundo, California-based company, which is famous for its toy brands like Barbie, Fisher-Price, Polly Pocket, Hot Wheels, American Girl and Thomas & Friends, saw its net loss narrow from $210.7 million last year to $115.2 million. It posted an adjusted earnings loss of 10 cents per share, which was better than the loss of 35 cents Refinitiv analysts were anticipating. Revenue grew 47% from the prior-year quarter to $874.2 million, topping projections of $684.2 million.
While the first quarter is typically a weak period for toy sales due to it following the holiday season, net sales in the North America segment increased 67% and International net sales grew 30%.
In a statement, Chairman and CEO Ynon Kreiz credited Mattel's "record" performance to its turnaround efforts.
"Following the third consecutive quarter of growing market share, 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."
Mattel continued to record good sales good growth among its doll businesses, with the American Girl division posting a 22% increase. Barbie, the company's most-known brand, also gained in popularity due to new product launches and innovations.
During the earnings call, President and Chief Operating Officer Richard Dickson commented on the renewed success of the iconic doll.
"Barbie's cultural relevance truly has never been stronger," he said. "We've been leaning into diversity, inclusivity and social impact and we've seen this reflected in the success of Fashionistas, which also had double-digit increases. Design led momentum as part of the playbook with innovative products like Color Reveal, Barbie Extra, also drove incremental growth in the first quarter."
Pleased with the start to the year, Chief Financial Officer Anthony DiSilvestro said in a press release that Mattel is "well-positioned to gain momentum for the full year." As a result, the toymaker increased its full-year outlook from mid-single-digit sales growth to an increase of 6% to 8%.
Following the announcement, shares of Mattel rose 7% in extended trading on Thursday. The rally carried over into Friday morning, with shares up 1.63% at $21.22. GuruFocus estimates the stock has climbed nearly 22% year to date.
Disclosure: No positions.
Read more here:
- Southwest Shares Take Flight on Stronger Bookings, Ramped Up Schedules
- Andreas Halvorsen Takes Stake in Mudrick Capital Acquisition Following Merger Announcement
- Canadian National Derails Canadian Pacific-Kansas City Southern Deal With Higher Offer
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
