Mattel posts record 47% quarterly sales jump as more parents buy Barbie dolls, Hot Wheels
Mattel Inc posted a record 47 percent jump in first quarterly sales to $874.2 million as Americans bought more Barbie dolls and Hot Wheels cars to keep kids entertained during the pandemic.
Sales are usually slow during the post-holiday months but surpassed analysts' estimate of $684.2 million in the first quarter ended March 31 as stuck-at-home parents continue to choose toys in spending their disposable income.
The California-based toymaker's shares rose more than 6 percent to $22.22 in extended trading.
Mattel Chief Executive Officer Ynon Kreiz said the company would raise its full-year sales growth outlook from a prior forecast of a mid-single-digit percentage increase.
First-quarter gross billings at Barbie, Mattel's biggest brand, soared 87 percent to $276.2 million, while Hot Wheels billings advanced 16 percent to $184.6 million.
Excluding certain items, Mattel posted a loss of 10 cents per share, much less than the 35 cents per share loss that analysts forecast.
While Mattel anticipates higher transportation and raw material costs this year, Kreiz expects it to offset that with increased sales.