Gifts / Sports & Toys

Inflation and supply chain issues are no match for Mattel's comeback. After completing its turnaround efforts, Mattel Inc. posted another double-digit growth, beating second-quarter earnings estimates and net sales soaring 20% from a year earlier to $1.23 billion.

The second-quarter success was driven by strong growth in some categories, with total global sales up 44% in the combined category, which includes action figures, building sets, games and other toys.

"Despite severe inflation, Mattel delivered double-digit growth in revenue and Adjusted EBITDA for another outstanding quarter," said Mattel Chairman and CEO Ynon Kreiz. The eighth consecutive quarter of revenue growth reflects the strength and breadth of our portfolio and the successful execution of our strategy to grow Mattel's IP-driven toy business and expand our entertainment offerings."

In addition, net sales in the first six months of the year also rose 20%, and other metrics such as operating income also rose.

"The first half of the year has been a period of significant growth for the company," said Ynon Kreiz. "We are benefiting from strong retail partnerships and look forward to meeting consumer expectations as we enter the second half of the year and the all-important holiday season. The expected growth in demand for our products.”

One area of concern on Wall Street is a slight decline in gross margins, from 47.5% in the second quarter of 2021 to 44.4%. The loss was primarily due to inflation, raw materials, supply chain costs, and copyright fees for licensed toys and games. Mattel said the decline was partially offset by adjusted pricing, favorable fixed cost absorption and savings from its "Optimize for Growth" program. In North America, total revenue rose 30% from the same period in 2021, while total international revenue rose 12%.

Globally, total sales of cars, including Hot Wheels and Matchbox, rose 23%. Total income for infants, toddlers and preschoolers, including Fisher-Price and Thomas & Friends, rose 20 percent. Sales of dolls, including Barbie and Polly Pocket, rose 2 percent, dragged down by a 19 percent decline in American Girl sales.