Markets
MAT

Barbie, Uno Push Mattel to Beat the Street on Sales and Earnings

Being stuck at home with nothing to do has apparently led families to return to old favorites for entertainment. Mattel (NASDAQ: MAT) reported second-quarter results Thursday that beat Wall Street estimates on the top and bottom lines as Barbie dolls and Uno playing cards saw strong demand.

With fall school reopenings still doubtful in many locations -- New York City, for example, may wait until there's a coronavirus vaccine before fully reopening -- the back half of Mattel's year could be robust, too. 

Collection of Barbie dolls

Image source: Mattel.

Back to basics

Mattel said revenue fell 15% year over year as retail stores were shut down, but net sales of $732 million were well ahead of expectations of just $678 million. And its loss for the quarter of $0.31 per share was flat versus a year ago, but better than the $0.36 per share loss Wall Street anticipated.

The better-than-expected outing was a result of Barbie sales exceeding even management's expectations. Global demand for Barbie was up more than 35% from last year. According to market research company NPD Group, the doll was the No. 1 toy property in the U.S. for five consecutive weeks. Mattel is also launching a program on Netflix in the fall called Princess Adventures that it believes will keep the momentum on Barbie going for some time.

Walt Disney's Star Wars franchise also contributed to the results as the "Baby Yoda" plush toy from the hit TV series The Mandalorian saw a successful launch. 

The games division also grew by double-digit rates as Uno saw strong results and was the No. 1 game in the U.S., according to NPD, and the digital version was a top-five downloaded card game in the U.S. 

Now that most stores have reopened, Mattel is expecting to build on the gains of the second quarter.

10 stocks we like better than Mattel
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Mattel wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 2, 2020

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short October 2020 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MAT NFLX DIS

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More