Barbie-maker Mattel CEO: Toy demand has been ‘extra than we anticipated’

Mattel is working to catch as much as an surprising surge in shopper demand for toys as the vacation procuring season rolls close to, CEO Ynon Kreiz advised CNBC Friday.

“We are seeing tremendous demand for our products, more than we expected,” he mentioned in an interview with Jim Cramer on “Mad Money.” “With such surge in demand, we are now working hard to be able to fulfill it.”

Mattel, the producer of iconic toy and recreation manufacturers like Barbie and Uno, stunned Wall Street when it posted a third-quarter revenue that extra than doubled analyst projections. The firm recorded internet revenue of $316 million, which was 4 instances higher than pre-pandemic revenue, on $1.6 billion in gross sales.

Mattel suffered losses within the tons of of hundreds of thousands of {dollars} within the earlier two quarters when enterprise was upended by the coronavirus lockdown.

“Just extraordinary growth in demand, coming from a decline in the first half into such growth in the third quarter heading into the holiday season,” Kreiz mentioned. “We’re working very hard to be able to try and fulfill it.”

With kids throughout the nation studying from residence and spending extra time inside in the course of the pandemic, toys started to fly off the cabinets as dad and mom sought methods to maintain kids occupied outdoors of laptops, cellphones and different applied sciences. Retailers have been pushed to refill their toy and board recreation inventories, which helped Mattel develop gross sales final quarter by 10%.

Barbie is one toy model that flew off the cabinets. Mattel, which producers the enduring line of dolls, mentioned it was up virtually 30% in every section. Producing $532.2 million in product sales, it was the model’s finest exhibiting since 2003 as the corporate sees optimistic reception for a extra inclusive vary of dolls.

“Demand for barbie grew by 50%,” Kreiz mentioned. “It really speaks to the strength and ongoing momentum of the brand.”

The firm now has its sights set on the fourth-quarter vacation procuring season and estimates that year-over-year gross sales will proceed to develop.

Despite the hundreds of thousands of Americans who stay out of labor as a result of results of widespread lockdowns earlier this yr, the analysis agency NPD tasks that households, particularly wealthier ones, may have much more to spend on toys from cash leftover by lowered trip and journey spending this yr.

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