The holiday buying season produced one of the best end-of-the-year quarter for Mattel in greater than a dozen years after toy sales elevated by double digits, outpacing the business, CEO Ynon Kreiz informed CNBC’s Jim Cramer Wednesday.
In its fourth-quarter report launched after Tuesday’s shut, Mattel posted $1.6 billion in sales, up 10% from the year-ago quarter. It marks the primary time the toymaker’s sales grew double digits in a holiday quarter since 2006 when the determine rose greater than 14%.
“This was an exceptional quarter for Mattel with our best performance in years with strong consumer demand and another milestone year for the company,” Kreiz mentioned in a “Mad Money” interview.
The performance, which adopted double-digit progress in the third quarter, is one signal that the corporate’s multi-year restoration plan is yielding outcomes underneath Kreiz’s management. He highlighted that the corporate can also be bettering money flows.
Mattel had its first progress yr since 2013 when revenues had been simply shy of $6.5 billion. For calendar yr 2020, Mattel reported $4.58 billion in income, practically 2% larger than in 2019, and $127 million in internet revenue, the primary worthwhile yr for the corporate since 2016, in keeping with FactSet. The outcomes had been higher than what analysts forecast.
Barbie had one of the best progress of Mattel’s product traces, with sales surging 16% on the yr.
“This is not just about the quarter or the year,” mentioned Kreiz, who grew to become chief government in the primary half of 2018. “It’s about the multi-year strategy that is tracking very well, which puts us in a strong position to continue to increase profitability and accelerate our growth in 2021 and beyond.”
That multi-year technique features a record of targets, together with restoring profitability and regaining topline progress in the short-to-mid time period whereas capturing the total worth of its mental properties in the mid-to-long time period.
Building an internet retail and e-commerce technique, together with producing movies involving Mattel manufacturers are a part of the corporate’s long-term imaginative and prescient.
The firm launched a movie and tv divisions in 2018 and has greater than 50 tasks in the works, with some presently in manufacturing and lots of in the event stage.
Among the tasks are an Uno live-action movie, a Whac-A-Mole sport present and a Thomas & Friends collection, Kreiz mentioned.
“This is part of our mid- to long-term strategy,” Kreiz mentioned. “These projects take time given the scale and their ambition, but we are well under way in putting them in place and, you know, in success this can be transformative.”
Looking ahead, Mattel tasks sales to develop by mid-to-single digits this yr, barring coronavirus affect and different financial uncertainties. The firm plans to spend between $125 million and $150 million on investments and different priorities.
Despite the sturdy quarterly report, Mattel shares dropped 2% Wednesday to an $18.47 shut. Year thus far, the inventory is up practically 6%.