Mattel has reported its third quarter 2021 financial results, boosted by strong performances from Barbie and Hot Wheels.
POS grew high single digits, with strength in North America, EMEA, and Latin America more than offsetting the impact of temporary retail closures in several countries in Asia-Pacific. Mattel in Europe was up 2.7% when Total Industry declined by -0.7%. Barbie was the #1 property in the Doll category in Q3 and YTD 2021 in Europe; YTD, Barbie was up 11.2% while the Dolls category is down -6.5%.
Hot Wheels was the #1 property in the Vehicles category in Q3 and YTD 2021 and grew seven times faster than the category for the quarter. In Q3, Hot Wheels was up 18.8% while the Vehicles category grew 2.9%.
Overall, Net Sales were up 8% as reported, and 7% in constant currency, versus the prior year’s third quarter. Reported Operating Income was $389 million, an increase of $10 million, and Adjusted Operating Income was $401 million, an improvement of $4 million. Reported Earnings Per Share was $2.29, an improvement of $1.40 per share, which includes a benefit of $1.44 resulting from the release of valuation allowances on deferred tax assets, and Adjusted Earnings Per Share was $0.84, a decrease of $0.10 per share.
Ynon Kreiz, Chairman and CEO of Mattel says: “This was another strong quarter for Mattel, with increased consumer demand for our products and results exceeding expectations. We successfully navigated ongoing global supply chain disruption, achieved sales growth and, per The NPD Group, continued to gain market share. We expect to grow for the balance of the year and have a strong holiday season. Our strength is foundational and broad-based, and we are on a clear path to improve profitability and accelerate top line growth. The Mattel team continues to execute on our strategy, and we are operating as an IP-driven, high-performing toy company.”
Anthony DiSilvestro, CFO of Mattel said: “We are very pleased with our overall financial performance and are consistently generating higher levels of cash flow, strengthening the balance sheet, and improving our credit metrics as we progress towards investment grade metrics.”
Net Sales in the North America segment increased 12% as reported and in constant currency, versus the prior year’s third quarter.
Gross Billings in the North America segment increased 12% as reported, and 11% in constant currency, driven by growth in Action Figures, Building Sets, Games, and Other (including Jurassic World, Masters of the Universe, WWE, Plush, and MEGA), Vehicles (including Hot Wheels), Dolls (including Barbie, Spirit, and Polly Pocket), and Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends).
Net Sales in the International segment increased 2% as reported and were flat in constant currency.
Gross Billings in the International segment increased 3% as reported, and 1% in constant currency, driven by growth in Action Figures, Building Sets, Games, and Other (including Masters of the Universe, Jurassic World, Plush, MEGA, and Games) and Dolls (including Barbie and Spirit), partially offset by declines in Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends) and Vehicles (including Hot Wheels and CARS).
Full-year Net Sales, in constant currency, are expected to increase by approximately 15% versus the prior year, up from prior guidance range of 12-14%.