Mattel revealed an unexpected ascent in quarterly sales on Thursday and figure more development in the holiday season, as retailers raced to restock their racks of Barbie dolls and different toys in high demand from stuck-at-home children.
With the COVID-19 pandemic constraining schools in numerous parts of the United States to hold classes online and limiting social entertainment options, guardians have gone to playsets and games to keep children’s boredom under control, boosting toy sales at retailers, for example, Walmart and Target.
As pre-pandemic inventories come up short, Mattel has needed to support shipments, prompting a 10% bounce in its net sales in the second from last quarter – the greatest increment in 10 years and the principal ascend since the beginning of the health emergency.
As per research firm NPD, demand is relied upon to increment as rich families, which have an excess of cash to go through with costly vacations being canceled, spend lavishly on toys during the holiday season.
“Based on … the low retail inventories and the early start of the holiday shopping season, we expect net sales to grow in the fourth quarter,” Mattel Chief Executive Officer Ynon Kreiz said in a statement.
Barbie net sales rose 29% to $532.2 million, the brand’s greatest quarterly sales since 2003, as Mattel’s endeavors to make the traditionally white, blonde doll more comprehensive with various skin tones and body types struck a chord with an increasingly diverse customer base.
Mattel posted net sales of $1.63 billion in the quarter finished Sept. 30, beating investigators’ evaluations of $1.46 billion, as per IBES information from Refinitiv.
Net income rose more than four-fold to $316 million, as cost cuts reinforced net revenues. The organization announced adjusted earnings of 95 pennies for each share.