Gifts / Sports & Toys

Mattel announced its financial results for the third quarter of 2021, which benefited from the strong performance of Barbie and Hot Wheels.

Revenue increased by high single digits, and the advantages in North America, Europe, the Middle East and Africa and Latin America were enough to offset the temporary closure of retail stores in several countries in the Asia-Pacific region. Mattel rose 2.7% in Europe, while the industry fell -0.7%. Barbie is the number one brand in the doll category in the third quarter of 2021 and year-to-date in 2021; year-to-date, Barbie has risen 11.2%, while the entire industry doll category has fallen -6.5%.

Hot Wheels is the number one brand in the vehicle category in the third quarter of 2021 and year-to-date, and its growth rate is 7 times that of the category this quarter. In the third quarter, Hot Wheels grew by 18.8%, while the vehicle category grew by 2.9%.

Overall, compared with the third quarter of last year, net sales increased by 8% and at constant exchange rates by 7%. Reported operating income was US$389 million, an increase of US$10 million, and adjusted operating income was US$401 million, an increase of US$4 million. The reported earnings per share was US$2.29, and earnings per share increased by US$1.40, including earnings of US$1.44 due to the release of valuation reserves for deferred tax assets. Adjusted earnings per share were US$0.84. The stock decreased by US$0.10.

Ynon Kreiz, Chairman and CEO of Mattel, said: “This is another strong quarter for Mattel. Consumer demand for our products has increased and performance has exceeded expectations. We have successfully dealt with continued global supply chain disruptions and achieved Sales growth, and according to the NPD Group, we continue to gain market share. We expect to maintain growth for the rest of this year and have a strong holiday. Our advantage is obvious, and we are on the move to improve profitability and accelerate On a clear path for revenue growth. The Mattel team continues to execute our strategy. We are an IP-oriented high-performance toy company."

Mattel CFO Anthony DiSilvestro said: "We are very satisfied with our overall financial performance, and as we move towards investment-grade metrics, we continue to generate higher levels of cash flow, strengthen our balance sheet, and improve our Credit indicators."

Compared with the third quarter of last year, net sales of the North American division increased by 12% at a constant exchange rate.

Because of action dolls, building sets, games and others (including Jurassic World, Master of the Universe, WWE, plush toys and MEGA), vehicles (including Hot Wheels), dolls (including Barbie, Spirit and Polly Pocket), and babies, Toddlers and preschoolers (including Fisher-Price and Thomas&Friends).

Net sales in the international division increased by 2% as reported and remained flat at constant exchange rates.

Driven by the growth of movable dolls, building suits, games and others (including Master of the Universe, Jurassic World, plush toys, MEGA and games), the total billing report of the international segment increased by 3%, calculated in fixed currencies. 1% and the dolls (including Barbie and elves) were partially offset by the decline in babies, toddlers and preschool (including Fisher and Thomas and friends) and vehicles (including Hot Wheels and cars).

Annual net sales (calculated at a constant exchange rate) are expected to increase by approximately 15% over the previous year, which is higher than the previous guidance range of 12-14%.