Toymaker Mattel tops quarterly profit estimates on cost controls
By Granth Vanaik
July 23 (Reuters) -Mattel MAT.O beat Wall Street estimates for second-quarter profit on Tuesday, aided by the toymaker's tight cost controls while posting a surprise drop in sales.
The Barbie maker has set a target of saving $200 million in costs by 2026 through initiatives such as streamlining its supply chain and plans to exit or out-license underperforming product lines.
Along with falling inventory management and input expenses, the efforts helped gross margins climb 410 basis points to 49.2% in the quarter.
The Hot Wheels maker's adjusted profit of 19 cents per share beat estimates of 17 cents, according to LSEG data.
Net sales fell 1% to $1.08 billion, amid a shift among consumers to spend more on experiences and services. Analysts had projected a marginal rise to $1.10 billion.
The company, which maintained its full-year profit and sales forecasts, also posted a drop of 18% in advertising and promotional expenses.
This comes as monthly sales report from Costco COST.O suggested a pickup in demand for toys since April.
Mattel CEO Ynon Kreiz said the company was well-positioned for the second-half, with new product innovation and increased retail support.
"We do expect the toy industry to decline modestly in the year, but this is an improvement from our outlook at the start of the year ... And based on our internal research, we're seeing that consumers are planning on purchasing toys this holiday season," Kreiz added.
Meanwhile, Reuters reported on Monday that buyout firm L Catterton had approached Mattel with an acquisition offer. The move could also prompt other suitors, including rival Hasbro HAS.O, to consider bids, the report said.
Kreiz reiterated on Tuesday he was confident in the company's strategy to create long-term shareholder value as standalone company.
Mattel has struggled since the blockbuster commercial success and acclaim of the Barbie movie boosted sales last year.
Reporting by Granth Vanaik in Bengaluru; Editing by Sriraj Kalluvila
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
