Toy company Mattel has reported a lower net loss in the first quarter, despite revenue easing.
The company’s net loss stood at $28.3 million as sales slid 1 per cent to $809.5 million. Gross profit increased 19 per cent to $388.9 million while gross margin rose to 48 per cent.
“Trends in consumer demand for our product improved through the quarter and we expect to outpace the industry and gain market share in 2024,” said Mattel chairman and CEO Ynon Kreiz. “We are executing our strategy to grow our IP-driven toy business and expand our entertainment offering.”
Gross billings in the North America segment inched 1 per cent higher, due to growth in vehicles (primarily Hot Wheels) and action figures, building sets, games, and other toys.
International billings fell 4 per cent due to a decline in dolls (primarily Disney Princess and Disney Frozen), infant, toddler, preschool (primarily Fisher-Price and Preschool Entertainment), building sets, games, and other (primarily action figures).
“We achieved strong bottom-line results, primarily driven by margin expansion, repurchased $100 million of shares in the quarter, and are on track to meet our full year guidance. We expect to continue to benefit from the Optimizing for Profitable Growth program, which is targeting $60 million in cost savings in 2024 and a total of $200 million in cost savings by 2026,” said Mattel CFO Anthony DiSilvestro.
