Enter your email address and start getting breaking law firm and legal news right now!
|Promote Your Attorney Profile on Law.net - Get Found / Earn More!|
Mattel: 3Q Boost Blamed on Barbie Doll
This 3rd Quarter Mattel saw a 16 percent boost, and the positive bump in their sales was due to the strength of their doll brand Monster High. With positive outlooks ahead going toward Black Friday and the Holiday season, Mattel beat the expectations of the Street as its shares reflected that positive forecast. Shares were up by 5% in trading this morning.
The results were in just as giant toy maker Mattel readies for Chrismukkah, where about half of the company’s annual revenue is generated, at the holiday season. The toy industry has seen weak sales, and analysts consider factors affecting sales such as a strong smart device market, and a strong tablet trend. In North America, Europe, as well as Australia, the trend is that toy sales are down; Mattel however, sets a benchmark and is a leader in the industry. According to Finance.Yahoo.com, “Mattel, the largest U.S. toy maker with many popular brands, has fared better than its competitors.”
Mattel CEO Bryan Stockton told analysts in the 3rd Quarter call, “I am pleased with where we are, as we head into the holiday season. On the sales side we grew revenue in every region of the world.” While for the past 4 quarters Barbie had seen declining sales, this quarter the No.1 doll brand saw a 3% increase. Among toys categories in general, dolls show strong sales, especially Mattel’s Monster High and American Girl brands.
Compared to the Mattel, in the first spot, Hot Wheels saw a 2% decline in sales, and Fisher-Price brands saw “flat sales.” While the government shutdown weighs on the economy, Mattel CEO Bryan Stockton commented that his expectation is that the shutdown wont affect the holiday season’s sales. He went on to say, “Every year, there’s something that happens in the industry: Hurricanes, dock strikes, U.S. politics, [yet] Christmas always comes on Dec. 25 and there are always toys under the tree for kids.”
A breakdown of the earnings report is as follows. In the past quarter, or the 90 days that ended Sept. 30th, Mattel earned $422.8 million, over their outstanding shares, being at $1.21 per share. In the past 12 month period, earnings were at $365.9 million, at $1.04 cents per share. Investors must rejoice at the nice earnings growth in the past year. Annual revenue in the company rose altogether by 6% from $2.08 billion upto $2.21 billion. Analysts’ expectations were at $2.175 billion for the toymaker. So the company beat expectations! North American gross sales increased by 3%, while international gross sales were up by 9%. “The company declared a fourth quarter dividend of 36 cents per share,” according to Yahoo Finance. On the trading floor, Mattels’ shares rose 5.8 percent, up by $2.4 to $43.96.
Image Credit: Mattel.comMattel: 3Q Boost Blamed on Barbie Doll by Jaan