Mattel, the toy maker behind the iconic Barbie brand, reported a significant boost in sales during the third quarter of this year. The surge in sales can be attributed to the success of the "Barbie" film, which was released in July. The movie has become the highest-grossing film of the year, earning over $1.4 billion worldwide. Mattel CEO Ynon Kreiz stated that the film's success has been a key milestone for the company.
In terms of financial performance, Mattel exceeded Wall Street's expectations. The company reported adjusted earnings per share of $1.08, compared to the expected 86 cents. Revenue also surpassed expectations, reaching $1.92 billion, compared to the projected $1.84 billion. However, despite the positive results, Mattel's shares fell about 6% in after-hours trading.
The success of the "Barbie" film is part of Mattel's broader strategy to use its intellectual property to inspire other potential blockbuster movies. The company aims to leverage its popular brands to expand its presence in the entertainment industry. In addition to Barbie, Mattel's Hot Wheels brand also experienced a substantial boost in sales, with a 22% increase compared to the same period last year. This growth can be attributed to the premiere of the car makeover competition series "Hot Wheels: Ultimate Challenge" on NBC and the announcement of an upcoming Hot Wheels film with Warner Bros.
Mattel has adjusted its full-year earnings per share outlook to a range of $1.15 to $1.25, up from $1.10 to $1.20. The company also increased its gross margin guidance to 48% from 47%. Despite a volatile retail environment, Mattel expects strong profit growth during the holiday quarter.
Overall, Mattel's Barbie brand has experienced a significant boost in sales thanks to the success of the "Barbie" film. The company's financial performance exceeded expectations, and it has expanded its strategy to use its intellectual property for potential blockbuster movies. With the holiday season approaching, Mattel remains optimistic about its profit growth.