Total revenue of $1.03 billion shot up 40% from the year-ago period and far outpaced analysts’ forecast. Net losses of 2 cents a share narrowed considerably from 32 cents a year ago and also shattered estimates.
Like rival Hasbro and others with physical retail operations, Mattel is emerging from an extremely challenging 2020, when Covid-19 tangled supply chains and shuttered stores. In addition to its toy lines, the company is increasingly looking to be a player in Hollywood. The company has new Masters of the Universe and Barbie series coming to Netflix this year, with a Polly Pocket film in the works at MGM and a Greta Gerwig-helmed live-action take on Barbie targeting 2023.
CEO Ynon Kreiz said consumer demand for Mattel goods was “outstanding” in the quarter. “We believe we are in the strongest position we have been in many years to improve profitability and accelerate topline growth,” he said. “This is an exciting time for Mattel.” He said the company was in the midst of becoming an “IP-driven” concern.
Shares in Mattel, which have recently returned to levels not seen since 2017, gained 3% in after-hours training on the blowout results.
The company’s dolls segment pulled in $395 million in revenue during the quarter, up 51% on growth in Barbie, American Girl, Spirit and Polly Pocket.
The top category in terms of growth was vehicles, where sales shot up 68% to $266 million, driven by Hot Wheels, Matchbox and Cars.