Mattel notched a robust second quarter, despite hiking prices, surpassing analysts’ forecasts for net revenues.
The action figures and Hot Wheels cars seller reported a 20% jump in sales to US$1.24bn, well above estimates of US$1.1bn.
Gross billings for Hot Wheels Toys increased 26% in the quarter, while action figures recorded a 44% climb, largely attributed to figurines from the ‘Lightyear’ and ‘Jurassic World’ films.
Mattel has felt the burden of surging raw materials, freight and labour, with its chief executive officer Ynon Kreiz admitting prices will have to rise again to offer the materials inflation.
He added that Mattel is confident toy sales would remain strong even in times of economic downturn.
Meanwhile, competitor Hasbro (NASDAQ:HAS) Inc also had a healthy second quarter, as demand for toys has so far weathered the soaring inflation.