Mattel said adjusted earnings for the three months ending in September came in at 95 cents per share, nearly triple the same period last year and well ahead of the Street consensus forecast of 39 cents per share. Group revenues impressed, as well, Hot Wheels and Barbie sales help boost the group's top line by 10% to a forecast-beating $1.63 billion.
Barbie sales, Mattel said, surged 28% to more than $532 million worldwide, while Hot Wheels sales jumped 6.6% to $312.8 million.
Looking into the final months of the year, Mattel said it sees margin expansion and cost savings to boost both net income and earnings growth while its remains "focused on creating long-term shareholder value.”
"This was a very strong quarter for Mattel. We saw a major upswing in topline and a significant increase in profitability as we continued to make meaningful progress towards becoming an IP-driven, high-performing toy company," said CEO Ynon Kreiz. "The toy industry, as a whole, grew significantly and continues to demonstrate its resilience in challenging economic times. Mattel’s growth outpaced the industry as we gained share in key markets around the world and achieved growth in each of our four regions.”
“Based on the point-of-sale momentum we are seeing, the low retail inventories and the early start of the holiday shopping season, we expect Net Sales and Gross Sales to grow in the fourth quarter," he added.
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