The demise of Toys ‘R’ Us continues to taunt toy manufacturers and suppliers, but Mattel’s revenue dip beats analyst expectations as Barbie and Hot Wheels are just flying off the shelves.
The demise of Toys R Us has hit the quarterly results of Mattel – but not as drastically as predicted.
Revenue slipped just 4 per cent to $708.4m over the most recent quarter, compared with $735.6m it turned over in the same period last year. This was significantly better than the median forecast of $694.4m from analysts surveyed by Thomson Reuters.
The impact of Toys R Us liquidation was softened by a strong showing for Mattel’s best-known brand Barbie, which enjoyed double digit growth – it’s best on record. Hot Wheels, too, showed promise in the quarter, helping to bring the company’s premier brand portfolio including Fisher-Price and Thomas & Friends to a combined 2 per cent increase during a very difficult period.
Mattel CFO Joe Euteneuer said: “Barbie and Hot Wheels are just flying off the shelves.” He said the company has been investing time to learn how the company can manufacture more of the best-selling brands.
Ynon Kriez, the firm’s newly appointed CEO who officially took the reins from outgoing Margo Georgiadis yesterday, said in a statement : “While Toys R Us will present a near-term challenge, our transformation plan remains our focus, as we work to deliver improved profitability and return Mattel to its leadership position as a high-performing toy company.”
