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.
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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.
Mattel said it planned to increase its forecast.
“We believe we are well-positioned to gain momentum for the full year,” said CFO Anthony DiSilvestro. “We are revising 2021 guidance to reflect our stronger-than-anticipated first quarter performance and updated outlook for cost inflation.”
Read the full earnings release here.
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