U.S. markets closed
  • S&P 500

    +61.35 (+1.49%)
  • Dow 30

    +360.68 (+1.06%)
  • Nasdaq

    +304.99 (+2.32%)
  • Russell 2000

    +53.68 (+2.47%)
  • Crude Oil

    +1.69 (+2.65%)
  • Gold

    +20.00 (+1.10%)
  • Silver

    +0.47 (+1.72%)

    +0.0062 (+0.51%)
  • 10-Yr Bond

    -0.0330 (-1.98%)

    +0.0050 (+0.36%)

    -0.0870 (-0.08%)

    -175.69 (-0.35%)
  • CMC Crypto 200

    +39.77 (+2.93%)
  • FTSE 100

    +80.28 (+1.15%)
  • Nikkei 225

    +636.46 (+2.32%)

Mattel Hits Four-Year High on Surging Barbie Purchases

  • Oops!
    Something went wrong.
    Please try again later.
Kelly Gilblom
·2 min read
Mattel Hits Four-Year High on Surging Barbie Purchases
  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) -- Mattel Inc. shares jumped to a four-year high after the toymaker beat Wall Street’s estimates for the first quarter and raised its outlook for all of 2021.

Revenue rose 47% to $874 million on soaring doll sales, Mattel said Thursday, beating analysts’ predictions of $684.8 million and marking the fastest growth in at least 25 years. The company reported a loss of 10 cents a share, excluding some items, but that was far less than the 33-cent loss analysts had predicted.

The El Segundo, California-based company is bouncing back from disastrous results a year ago, when the pandemic wiped out stores and led to factory closings and production delays. Barbie and American Girl doll sales led the rebound, particularly in North America, with worldwide billings soaring 69%.

Mattel now expects sales to rise 6% to 8% in 2021, an increase from its previous projection of a mid-single-digit gain in revenue. Earnings before interest, taxes, depreciation and amortization will be $800 million to $825 million, about $25 million more than estimated in February.

“Following the third consecutive quarter of growing market share, we are strengthening our position as a consistent leader in the toy industry,” Chief Executive Officer Ynon Kreiz said in a statement. “We believe we are very well-positioned to improve profitability and accelerate top-line growth in 2021 and beyond.”

Mattel rose as much as 12% to $23.31 in New York trading Friday, the highest price for the shares since April 2017. The stock had already advanced 20% this year through Thursday, mostly as Barbie sales continue to outperform.

The company has worked to improve profitability through cost cuts and other measures, and its adjusted gross margin increased to 47% from 43.5% a year earlier. Further, its credit rating has improved after the company was downgraded to junk in 2017, when sales and margins were tumbling. It completed a $1.2 billion refinancing over the quarter, reducing annual interest expense by $40 million.

(Updates with shares starting in first paragraph.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.