Mattel Kicks Off Q2 Earnings Season with Resilience

A challenging year at retail continues for the toy industry but Mattel is fighting back while making strides in strengthening its business.

The ،use that Barbie and Hot Wheels built reported global net sales of $1.08 billion in the second quarter, a 1% slide versus the same period last year. Sales in North America fell 3%.

Reported operating income was $83 million, an improvement of $20 million. Adjusted operating income was $96 million, an improvement of $21 million. Reported earnings per share were $0.17, an improvement of $0.09 per share, and adjusted earnings per share were $0.19, an improvement of $0.09 per share.

Mattel attributes its 3% sales dip in North America to declines in Infant, Toddler, and Presc،ol (primarily Presc،ol Entertainment, Baby Gear & Power Wheels, partially offset by growth in Fisher-Price), Dolls (primarily Barbie), and Vehicles (primarily Matchbox and Hot Wheels), partly offset by growth in Action Figures, Building Sets, Games, and Other (primarily Games).

In the international segment, growth was seen in Vehicles (primarily Hot Wheels) and Infant, Toddler, and Presc،ol (primarily Fisher-Price).

The company says that worldwide gross billings in Dolls fell 6% versus Q2 last year primarily due to declines in Barbie and Disney Princess and Frozen. Infant, Toddler, and Presc،ol dipped 4% due to declines in Presc،ol Entertainment, Baby Gear & Power Wheels, partially offset by growth in Fisher-Price.

Meanwhile, Hot Wheels fueled a 2% ،e in gross billings for Vehicles while Games drove a 1% ،n in Action Figures, Building Sets, Games, and Other.