Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Mattel forecasts full-year earnings above estimates as toy demand holds strong

Stock Markets Feb 09, 2022 05:12PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Mattel logo is seen on a toy for sale in the Kidding Around toy store Manhattan, New York City, U.S., November 23, 2021. REUTERS/Andrew Kelly
 
MAT
+2.94%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HAS
+2.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Deborah Mary Sophia and Uday Sampath Kumar

(Reuters) - Mattel Inc (NASDAQ:MAT) forecast full-year profit above estimates on Wednesday, with the company confident robust demand for its Barbie dolls and other toys will help it weather rampant supply chain disruptions, sending its shares up about 6% in extended trading.

Demand for toys has surged to a record high over the last year thanks to homebound parents looking to keep their children entertained indoors during the pandemic, helping toymakers such as Mattel raise prices to counter surging costs without fear of much consumer pushback.

Mattel's holiday-quarter revenue jumped 10% to about $1.80 billion, beating analysts' estimates of $1.66 billion, despite factory closures and supply disruptions caused by the spread of the Omicron coronavirus variant.

Even as supply chain bottlenecks and surging raw material costs show no signs of easing, Mattel Chief Executive Ynon Kreiz told Reuters he was confident the company had enough options to navigate the issues, including potentially raising prices further.

"We are not necessarily expecting supply chain disruptions to go away, but we do expect to be able to navigate further disruption if it comes," he said.

Earlier this week, rival Hasbro Inc (NASDAQ:HAS) warned of a hit to its profit margins this year, due to surging supply costs.

Mattel expects adjusted 2022 profit of $1.42 to $1.48 per share, above estimates of $1.39 per share, according to Refinitiv IBES. It forecast net sales to rise between 8% and 10% on a constant currency basis.

The toymaker also lifted its 2023 net sales growth forecast to high single digits from a previous outlook of mid-single-digit growth.

An added lift to sales in 2023 will likely come from Mattel winning back the lucrative rights to make dolls based on Disney Princesses, with Kreiz saying he expects revenue from the toy line to grow past current levels.

Hasbro, which has held the Disney Princess license since 2016, has on average generated about $250 million in revenue per year from the business.

Mattel forecasts full-year earnings above estimates as toy demand holds strong
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email