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The
toymaker's shares rose 6% in extended trading.
With the COVID-19 pandemic forcing schools in many parts of the
United States to hold classes online, parents have turned to
playsets and games to keep children's boredom at bay, boosting
toy sales at retailers such as Walmart Inc <WMT.N> and Target
Corp <TGT.N>.
As pre-pandemic inventories run low, Mattel has had to boost
shipments, leading to a 10% jump in its third quarter net sales
- the biggest increase in a decade.
According to research firm NPD, demand is expected to increase
as wealthy families with excess of money to spend due to
canceled vacations splurge on toys during the holiday season.
Mattel Chief Executive Officer Ynon Kreiz said he expects Barbie
play houses and fashion dolls to be among the company's
best-selling toys for the holiday quarter, but warned of
potential overall supply challenges.
"We cannot be certain we will fully meet the surge in consumer
demand," Kreiz said on a call with analysts.
Barbie gross sales rose 29% to $532.2 million, the brand's
biggest quarterly sales since 2003, as efforts to make the
traditionally white, blonde doll more inclusive with different
skin tones and body types struck a chord with an increasingly
diverse customer base.
Mattel posted net sales of $1.63 billion in the quarter ended
Sept. 30, beating analysts' estimates of $1.46 billion,
according to IBES data from Refinitiv.
The company reported adjusted earnings of 95 cents per share,
beating estimates of 39 cents, as cost cuts beefed up profit
margins.
The company forecast mid-single-digit growth in fourth-quarter
gross sales on a constant currency basis.
(Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel)
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