Mattel, Inc (NASDAQ:MAT) plans to build on the success of the Barbie movie as it aims to get more out of the intellectual property (IP) it has built with its toy brands.
Releasing second-quarter results, Mattel chairman and CEO Ynon Kreiz commented: “This moment will be remembered as a key milestone in our company’s history with the release of the Barbie movie, our first ever major theatrical film.
“The Barbie movie is a showcase for the cultural resonance of our IP, our ability to attract and collaborate with top creative talent, and the capabilities of our franchise management organization. This also speaks to the potential of Mattel Films and the significant progress of our strategy to capture the full value of our IP.”
The release of the Barbie movie last weekend saw $155 million in ticket sales in North American theaters, while it earned $182 million internationally, well above predictions. This is expected to result in increased sales of the doll the movie is modelled on into the holiday season.
Ahead of that, Mattel company reported a 12% decline in net sales to $1.09 billion for the three months to June 30, 2023, beating the $1 billion consensus estimate of the Street, according to Refinitiv data.
Adjusted earnings per share fell 44% to $0.10, surprising analysts who had expected a $0.02 loss for the quarter.
The company said its performance was negatively impacted as retailers continued to manage inventory levels and by some overall industry softness.
“At this point, we believe the retail inventory correction is mostly behind us, and we look forward to meeting consumer demand for our product, as we enter the second half of the year and all-important holiday season,” CFO Anthony DiSilvestro added.
“Given our year-to-date performance and outlook for the balance of the year, we are reiterating our guidance.”
Earlier, the company announced president and chief operating officer Richard Dickson, who leaves on August 3 to take up the position of president and CEO of clothing retailer Gap.
Mattel’s shares were up 2.3% at $21.70 by late morning in New York, taking gains over the past month to more than 15%.
Contact the author at stephen.gunnion@proactiveinvestors.com