Benzinga - by Chris Katje, Benzinga Staff Writer.
Toy company Mattel Inc (NASDAQ: MAT) enjoyed a year of strong brand name awareness with its Barbie brand getting headlines galore after the box office-breaking performance of the movie of the same name.
While the company’s second-quarter results saw an impact from the success of the “Barbie” movie, the upcoming third-quarter results could be the one for investors to watch.
What Happened: The highly anticipated “Barbie” movie broke box office records and generated a ton of publicity for the brand owned by Mattel.
A new report showed sales of Barbies were strong in the months of July and August, which came after the movie’s mid-July release date and subsequent to the second-quarter earnings which were for the period that ended June 30, 2023.
Barbie toy sales were up 25% year-over-year in the months of July and August according to data from market research firm Circana, as shared by CNN. Circana tracks retailers' point-of-sales data for its estimates.
Data from Circana showed Barbie as the number one brand in the dolls category for the two months with an impressive six of the top 10 selling items in the category for the time period.
Benzinga previously reported Mattel expanded its "Barbie The Movie" product collection inspired by the film. The new line saw characters from the movie released by Warner Bros. Discovery (NASDAQ: WBD) with outfits from the film.
Related Link: Richard Dickson Revived Barbie For Mattel, Can He Revive Struggling Clothing Company Gap?
Why It’s Important: Mattel beat revenue and earnings per share estimates from analysts in the second quarter, according to data from Benzinga Pro.
The company reported second-quarter earnings per share of 10 cents and revenue of $1.09 billion.
Last year’s third quarter saw revenue of $1.79 billion and earnings per share of 82 cents.
“Mattel’s second quarter financial results were in line with our expectations. We significantly increased free cash flow and continued to gain market share,” Mattel CEO Ynon Kreiz said at the time. “Importantly, this moment will be remembered as a key milestone in our company’s history with the release of the 'Barbie' movie, our first ever major theatrical film.”
The strong box office performance of the "Barbie" movie is viewed as a catalyst by Mattel, with further monetization of the company’s library of brands ahead.
"The 'Barbie' movie is a showcase for the cultural resonance of our IP, our ability to attract and collaborate with top creative talent, and the capabilities of our franchise management organization. This also speaks to the potential of Mattel Films and the significant progress of our strategy to capture the full value of our IP,” Kreiz said.
The "Barbie" movie grossed $621.3 million domestically and $1.4 billion worldwide, making it the top movie for 2023 in both cases.
Kreiz hinted the Barbie branding deals and strong sales could continue in the second half of 2023, saying some items would be timed for the holiday shopping season. The CEO said more than 165 total partnerships for Barbie had been signed.
Mattel maintained its full-year guidance after the second quarter beat and despite the success of the Barbie movie, which could be an item for investors to watch.
Third and fourth-quarter financial results from the company could be the key to Barbie magic continuing into the future.
MAT Price Action: Mattel shares trade at $21.24 versus a 52-week trading range of $15.36 to $23.13. Shares of Mattel are up 18.7% year-to-date in 2023.
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