Barbie, Hot Wheels power Mattel's holiday-quarter sales beat

2/2 © Reuters. New Barbie dolls from Mattel are pictured in the Manhattan borough of New York City 2/2

(Reuters) - Mattel Inc (NASDAQ:MAT) beat estimates for quarterly sales on Tuesday as parents splurged on Barbie dolls and Hot Wheels cars for their children during a holiday season that was dulled by the COVID-19 pandemic.

The toymaker has seen a surge in sales since the latter half of 2020 as the easing of coronavirus-led curbs drove toy stores to restock their shelves and cater to young families dealing with canceled vacations and a dearth of social events.

That jump in sales may be hard to repeat in 2021, Mattel Chief Executive Officer Ynon Kreiz told Reuters in an interview.

"We do expect to deliver strong sales growth in the first half (of 2021) compared to last year, but it will probably be more challenging in terms of comparison in the second half," Kreiz said.

The toymaker said worldwide gross billings for Barbie, Mattel's biggest brand, rose 19% in the fourth quarter, while Hot Wheels billings rose 13%. Gross billings excludes sales adjustments such as trade discounts.

Mattel's overall net sales rose about 10% to $1.63 billion for the fourth quarter ended Dec. 31, beating analysts' estimates of $1.58 billion, according to IBES data from Refinitiv.

Rival Hasbro Inc (NASDAQ:HAS) reported a 3.6% increase in comparable holiday quarter revenue on Monday, also beating analysts estimates on demand for board games such as Monopoly, as well toys based on "The Mandalorian" TV series.

Mattel reported adjusted earnings of 40 cents per share, up from 11 cents per share a year earlier.

The company also announced a new cost-cutting program, aimed at saving about $250 million in costs by 2023. Mattel said it expects to spend between $100 million to $125 million to implement it.