The first quarter was a challenging one for Mattel with net sales falling 22% to $815 million amid the beginning of a reset year for much of the toy industry. Despite double-digit declines, the company remains confident in its multiyear growth strategy and has doubled down on its guidance for 2023.
“While retail inventory management impacted the first quarter’s results, the underlying business performed well. Mattel achieved growth and gained market share, per Circana,” says Mattel Chairman and CEO Ynon Kreiz. “The fundamentals of our business are strong. We expect to outpace the industry, gain market share, and achieve our full-year guidance. We are well positioned to continue executing our multi-year strategy and create long-term shareholder value.”
Net sales in North America fell 27% while global gross billings declined across all categories but one: Vehicles.
“We expect consumer demand to be positive for the full year and for revenue comparisons to improve, as shipping patterns revert to historical trends in the second half,” added Mattel Chief Financial Officer Anthony DiSilvestro.
Mattel says that despite the declines, it experienced growth in Hot Wheels, Monster High, and the relaunch of Disney Princess and Disney Frozen products.
Looking ahead, Mattel’s entertainment offerings could start driving sales with the debut of Hot Wheels Ultimate Challenge on NBC, a Barbie Dreamhouse Challenge on HGTV and HBO Max, and the release of the Barbie movie this summer.
The company recently unveiled a historic licensing partnership with Hasbro that will result in co-branded products that will begin hitting retail this fall.
Mattel leadership will speak with investors and analysts to discuss the earnings and guidance for 2023 on a call this afternoon.
