Toy manufacturer Mattel has reported an increase in profit amid lower sales for the second quarter ended June 30.
The company’s net sales were down 1 per cent to $1.080 billion, with North America sales dropping 3 per cent and international sales up 2 per cent.
Net income rose to $57 million from $27.2 million in the prior year, while adjusted EBITDA was $171 million, representing an improvement of $23 million.
Gross margin increased to 49.2 per cent versus 45.1 per cent in the prior year, driven by savings from the ‘Optimizing for Profitable Growth’ program, cost deflation, lower sales adjustments, and lower inventory management costs.
Ynon Kreiz, chairman and CEO of Mattel, said it was a “good quarter” for the company with significant gross margin expansion and increased profitability.
“Mattel is well positioned for the second half, with new product innovation and increased retail support. We are in a strong financial position to execute our strategy to grow our IP-driven toy business and expand our entertainment offering,” Kreiz added.
For the full year, the toy company expects net sales to be flat and adjusted EBITDA to be in the range of $975 million to 1.025 billion, compared to last year’s $948 million.
