Not This Yr, Mr. Grinch: Mattel Eliminates Christmas Provide Worries

New Mattel Barbie dolls are pictured within the Manhattan neighborhood of New York Metropolis, New York, USA on February 21, 2020. REUTERS / Carlo Allegri / File Photograph

Oct. 21 (Reuters) – Mattel Inc (MAT.O) raised its 2021 gross sales forecast on Thursday, saying it will overcome industry-wide delivery disruptions to sign a powerful vacation season led by Barbie and Scorching Wheels, pushing up its shares by 6% in Prolonged Commerce.

The corporate has elevated manufacturing, contracted extra ocean freight capability and secured entry to extra ports to keep up provide throughout probably the most important time of 12 months for toy makers, the director instructed Reuters. Normal Ynon Kreiz.

As demand for toys hits document highs, extreme international provide chain bottlenecks have threatened to maintain retailer cabinets empty this vacation season, leaving retailers and suppliers scrambling to seek out methods. pace up product shipments. Learn extra

“We have been engaged on provide chain disruptions, it is not a standard 12 months. However even with that, we count on to have plenty of toys below the bushes over the Christmas holidays,” Kreiz mentioned.

Internet gross sales rose 8% to $ 1.76 billion within the third quarter, as prospects trying to entertain their kids in the course of the pandemic bought Scorching Wheels vehicles and Barbie dolls.

Analysts had estimated gross sales at $ 1.69 billion, in response to IBES knowledge from Refinitiv.

Child toy maker Fisher Value additionally noticed a 50% enhance in gross sales of character-based motion figures from common franchises similar to “Masters of the Universe.”

Its choice to boost costs earlier this 12 months to counter rising uncooked materials prices didn’t damage demand, Kreiz mentioned.

Mattel mentioned it expects fixed foreign money web gross sales for the complete 12 months to extend by about 15%, in comparison with its earlier forecast of a rise of 12% to 14%.

Third-quarter web revenue jumped 161% to $ 812.6 million, or $ 2.29 per share, helped by a $ 510 million non-cash profit from the discharge of reserves on sure tax belongings deferred.

Uday Sampath report in Bangalore; Modifying by Devika Syamnath

Our requirements: Thomson Reuters Belief Ideas.

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