Mattel Surprises in 1Q as Toy Sales Accelerate

Retail FOXBusiness

Mattel (MAT) posted a first-quarter beat on the top- and bottom-lines on Wednesday as U.S. sales surged thanks to its Mattel Girls brand and demand ramped up in Europe despite the region’s ongoing economic headaches.  

Continue Reading Below

The El Segundo, Calif.-based maker of Barbie dolls and Hot Wheels reported net income of $38.5 million, or 11 cents a share, compared with a year-earlier profit of $7.8 million, or 2 cents.

The results, also helped by tighter expenses, beat average analyst estimates in a Thomson Reuters poll by two pennies.

Revenue for the three-month period grew 7% to $995.6 million from $928.4 million a year ago, trumping the Street’s view of $986.5 million.

Sales of the nation's largest toymaker were led by a 5% improvement in North America, which includes toy sales in the U.S., Canada and its entire American Girl brand. Internationally, sales were up 9%, excluding a negative impact from foreign exchange rates.

"Overall, 2013 is off to a solid start, demonstrating the strength of our global portfolio of brands, countries and customers,” Mattel CEO Bryan Stockton said in a statement. “We are very pleased with the performance of our Girls portfolio and the strong results across all regions, particularly Europe."

Continue Reading Below

A strong 11% sales increase in its Mattel Girls and Boys brands to $692.2 million helped to offset a 7% decline to $287.3 million in Fisher-Price toys.

Shares of Mattel climbed 3.2% premarket to $44.35 following the results.