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This announcement comes after the toy giant revealed it experienced a drop in second-quarter sales due to the coronavirus shutting down the majority of brick-and-mortar stores.
However, Mattel’s global manufacturing and distribution – 60 percent of which are done in China – are back in operation.
"While not recession-proof, the toy industry has been resilient in downturns... we believe parents will continue to prioritize spend on their children, even in tough economic times," Mattel CEO Ynon Kreiz said in a phone call with analysts. "With approximately 65 percent to 70 percent of our sales usually coming in the second half of the year, there is time to regain sales momentum."
Mattel shipped around 750,000 Baby Yoda plush toys between March and April and is preparing to meet increased demand during the 2020 holiday season. Season two of the Star Wars spinoff series “The Mandalorian,” which stars the beloved little green alien, is set to be released on Disney+ in October -- just in time for the holiday rush.
Despite selling hundreds of thousands of Baby Yoda toys, Mattel lost 10 cents per share in the first quarter, according to IBES data from Refinitiv.
Conversely, Mattel reported it has a $1.6 billion credit line and cash reserves to help the company survive the pandemic.
Kreiz noted that although he expects demand to increase by the near end of the fourth quarter, Mattel’s production would be in line with evidence-backed consumer shopping trends.