Mattel Inc. (NASDAQ: MAT) reported a narrower loss in the second quarter of 2019 driven by higher revenue as well as lower costs and expenses. The bottom line came in narrower than the analysts’ expectations while the top line exceeded consensus estimates.
Net loss was $108 million or $0.31 per share, narrower than a loss of $240.9 million or $0.70 per share in the prior year quarter. Adjusted loss per share narrowed to $0.25 from $0.54 a year ago.
Net sales for the quarter rose by 2% year-over-year to $860.1 million. The company achieved top line growth in North America and International segments across all regions, as well as growth in all categories except Fisher-Price and Thomas & Friends.
The company said it continues to gain traction and remains on-track to transform Mattel into an IP-driven, high-performing toy company. Mattel continues to execute towards its goal to restore profitability and regain topline growth in the short-to-mid term, and to capture the full value of its IP in the mid-to-long term.
In Dolls category, gross sales rose by 3% driven by growth in Barbie and Polly Pocket. In Vehicles category, gross sales remained flat from last year as decline in Jurassic World vehicles and CARS substantially offset by growth in Hot Wheels.
In Infant, toddler and preschool category, gross sales fell by 13% due to declines in Fisher-Price Core, Fisher-Price Friends, and Thomas & Friends. Gross sales in Action Figures, Building Sets and Games categories climbed by 21% backed by initial sales of Toy Story 4, partially offset by Jurassic World.
Also read: Will 5G technology replace 4G LTE
Looking ahead into the full year 2019, the company expects about $100 million in strategic investments with over 90% impacting operating expenses. Gross profit is expected to be about 10% as additional categories showed brands rising and it continues to grow IP outside of toy, including live events and digital games.
On Tuesday, Mattel’s peer Hasbro (NASDAQ: HAS) reported a 78% plunge in earnings for the second quarter due to a charge related to the settlement of pension plan liability. However, the results exceeded analysts’ expectations.
Shares of Mattel closed Thursday’s regular session up 0.16% at $12.51 on the Nasdaq. Following the earnings release, the stock advanced over 4% in the after-market session.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,