Barbie maker Mattel CEO: Demand for toys was “greater than we anticipated”.
Mattel is working to offset an unexpected surge in consumer demand for toys as the holiday shopping season approaches, CEO Ynon Kreiz told CNBC on Friday.
“We are seeing an enormous demand for our products, more than we expected,” he said in an interview with Jim Cramer about “Mad Money”. “With this growing demand, we are now working hard to meet it.”
Mattel, maker of popular toy and game brands such as Barbie and Uno, surprised Wall Street with a third-quarter profit that more than doubled analysts’ forecasts. The company had net income of $ 316 million on sales of $ 1.6 billion, four times its pre-pandemic profit.
Mattel suffered hundreds of millions of dollars in losses over the past two quarters as the coronavirus lockdown weighed on business.
“Just an exceptional growth in demand that can be traced back from a decline in the first half of the year to such growth in the third quarter before the start of the holiday season,” said Kreiz. “We’re working very hard to make it happen.”
As children across the country learned from home and spent more time indoors during the pandemic, toys flew off shelves as parents looked for ways to keep kids busy outside of laptops, cell phones, and other technology. Retailers were pushed to replenish their inventories of toys and board games, which helped Mattel increase sales by 10% last quarter.
Barbie is a toy brand that blew off the shelves. Mattel, maker of the iconic doll line, said it had increased nearly 30% in every segment. With gross sales of $ 532.2 million, this was the brand’s best accomplishment since 2003 as the company sees more positive adoption for a wider range of dolls.
“The demand for Barbie increased by 50%,” said Kreiz. “It really speaks volumes about the strength and continued dynamism of the brand.”
The company is now targeting the fourth-quarter holiday season and estimates that year-over-year sales will continue to grow.
Despite the millions of Americans remaining unemployed due to widespread lockdowns earlier this year, research firm NPD believes families, especially wealthier ones, will have to spend even more money on toys left over from lower vacation and travel expenses Year.