The primary six months of the yr have been robust for the U.S. toy trade, however many are optimistic in regards to the second half of the yr.
Sizzling off the worldwide success of Barbie: The Film final week, Mattel kicked off second quarter earnings season with information that internet gross sales fell 12% to $1.08 billion. The corporate says that its Q2 earnings are in step with expectations because it believes the bizarre retail correction is planted firmly within the rearview mirror. North America took the largest hit with internet gross sales and gross billings every declining by 18%. Total, the earnings and revenue in Q2 beat Wall St. estimates.
Mattel’s second quarter monetary outcomes had been in-line with our expectations. We considerably elevated free money movement and continued to realize market share. Importantly, this second shall be remembered as a key milestone in our firm’s historical past with the discharge of the 'Barbie' film, our first ever main theatrical movie. The 'Barbie' film is a showcase for the cultural resonance of our IP, our capacity to draw and collaborate with high inventive expertise, and the capabilities of our franchise administration group. This additionally speaks to the potential of Mattel Movies and the numerous progress of our technique to seize the total worth of our IP.”
As expected, international gross billings for Mattel’s Dolls class spiked 10%, however these elevated orders got here from Disney Princess, Disney Frozen, and Monster Excessive and had been partially offset by a decline in Barbie.
Elsewhere, worldwide gross billings in Autos spiked 11% globally as Sizzling Wheels continues to be on a roll. Gross billings for the Toddler, Toddler, and Preschool class fell 28% primarily because of declines in Fisher-Value; whereas Motion Figures, Constructing Units, Video games, and Different dipped a whopping 39% which Mattel attributes largely to Motion Figures timed with final yr’s film releases.
“Whereas comparisons improved from the primary quarter, our second quarter monetary outcomes had been negatively impacted as retailers continued to handle stock ranges and by some general trade softness,” provides Mattel Chief Monetary Officer Anthony DiSilvestro. “At this level, we imagine the retail stock correction is usually behind us, and we stay up for assembly shopper demand for our product, as we enter the second half of the yr and all-important vacation season. Given our year-to-date efficiency and outlook for the stability of the yr, we’re reiterating our steerage.”
Mattel believes that an upswing within the again half of the yr will result in general internet gross sales for 2023 being comparable or basically flat when in comparison with 2022.
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