Mattel Beats Sales Estimates as Girl Power Fuels Toy Industryby
Shares jump in late trading after company releases results
Sales of Barbie, American Girl dolls surged last quarter
Mattel Inc. posted third-quarter sales that topped analysts’ estimates, joining rival Hasbro Inc. in getting a boost from girl-oriented toys.
Sales of Barbie, Mattel’s biggest product, jumped 16 percent in the period, the company said in a statement Wednesday. Its American Girl doll line also surged, rising 14 percent. That helped bring overall net sales to $1.8 billion, beating the $1.78 billion estimated by analysts.
The results reflect a comeback for Barbie, which Mattel revamped with different body types, including more realistic versions with curvier hips and shorter legs. It also underscores a broader resurgence in girls toys. Hasbro, which began offering Disney Princess products this year after winning away the franchise from Mattel, saw sales at its girl-focused division jump 57 percent last quarter. Its boys’ products grew just 2 percent.
“Our strategies are generating good progress on many fronts, and while we still have a critical fourth quarter to execute, we remain broadly on track to deliver on our full-year outlook,” Mattel Chief Executive Officer Christopher Sinclair said in Wednesday’s statement.
Shares of the El Segundo, California-based company rose as much as 5.8 percent to $32.40 in late trading after the results were released. They were already up 13 percent this year through Wednesday’s close.
Mattel reported third-quarter earnings of 70 cents a share, excluding some items. That was a bit shy of the 71 cents analysts had projected. The strong dollar continued to weigh on sales overseas, sending international sales down 4 percent in the period.