Following on from positive Q3 results for Mattel, they have posted better than expected results for the last quarter of the year….
Shares at Mattel have jumped 16 per cent after the Barbie toymaker posted strong sales of the fashion doll brand and improved profit margins.
The 60 year old doll brand and its Hot Wheels franchise both helped Mattel to better than expected earnings with revenue falling less than feared during the Christmas period.
The stringent cost-cutting efforts Mattel has also recently employed have helped the toymaker to upbeat earnings.
Barbie’s gross sales climbed 12 per cent year on year in the fourth quarter, while sales of Hot Wheels were up nine per cent. Those gains were partially offset by sales at Fisher-Price and Thomas & Friends, which fell 17 per cent. American Girl dropped 27 per cent.
For the year, Barbie sales totalled $1.09bn, marking its highest full year gross sales in five years. Meanwhile, sales of Hot Wheels totalled $834.1 million, its highest on record.
It all saw revenue fall five per cent from a year ago to $1.5bn, ahead of expectations for $1.4bn. The decline has been attributed to Toys R Us’ liquidations and a slowdown in its China business.
Meanwhile, gross margin improved to 46.6 per cent in the quarter – the first improvement for the fourth quarter since 2013 – up from 30.6 per cent in the year ago period.
Mattel announced a $650 million cost-cutting plan in 2017 and last summer said it would axe more than 2,200 jobs in its turnaround plans.
With results now in from Hasbro and Mattel, all eyes turn towards LEGO for their financial results due later this month.