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Strong Barbie sales limit Mattel’s Q2 2020 loss

Agence France-Presse, Agence France-Presse
Strong Barbie sales limit Mattel’s Q2 2020 loss

Photo from Mattel

Mattel reports a loss of $109.2 million in the 2nd quarter of 2020, though sales of Barbie rise 7%

Better-than-expected sales of games and Barbie dolls helped offset much lower sales of Hot Wheels and Fisher-Price toys, limiting Mattel’s losses in the 2nd quarter, the toymaker said Thursday, July 23.

Mattel’s results were a sign of the uneven impact of coronavirus lockdowns on demand for its array of toys, which also includes the Thomas and Friends and American Girl brands.

“We entered the 2nd quarter with extensive retail closures and distribution challenges and had to absorb a full quarter of COVID-19 impact,” said Mattel chief executive Ynon Kreiz in a news release.

“While revenues were down, they exceeded our expectations, particularly in North America, Barbie, and games, where we saw sales increases.”

The toymaker still reported a 2nd quarter loss of $109.2 million behind a 15% drop in revenues to $732 million.

Sales of Barbie rose 7% during the period, much better than the 21% fall in Fisher-Price and Thomas & Friends and the 22% drop in Hot Wheels.

The toymaker said all its factories were now open after it experienced temporary closures of some manufacturing and distribution facilities early in the quarter.

Shares jumped 5.2% to $12.23 in after-hours trading. – Rappler.com