Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Supply snags will not steal Mattel's Christmas this year

Stock MarketsOct 21, 2021 23:26
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: New Barbie dolls from Mattel are pictured in the Manhattan borough of New York City, New York, U.S., February 21, 2020. REUTERS/Carlo Allegri/File Photo

By Uday Sampath Kumar

(Reuters) -Mattel Inc on Thursday raised its 2021 sales forecast, saying it would overcome industry-wide shipping disruptions to ring in a strong holiday season steered by Barbie and Hot Wheels, driving its shares 6% higher in extended trading.

The company has pulled forward production, contracted more ocean freight capacity and secured access to additional ports to keep up supply during the most crucial time of the year for toymakers, Chief Executive Officer Ynon Kreiz told Reuters.

While demand for toys is at an all-time high, severe global supply chain bottlenecks have threatened to keep store shelves empty this holiday season, leaving retailers and suppliers scrambling for ways to speed up product shipments.

"We've been working through supply chain disruptions, it's not a normal year. But even with that, we expect to have lots of toys under trees this Christmas holiday," Kreiz said.

Mattel (NASDAQ:MAT) said it expects full-year constant currency net sales to increase about 15%, compared with its prior forecast for a 12% to 14% rise.

James Zahn, deputy editor at trade magazine The Toy Book, said supply chain issues affecting the industry also give large toymakers an opportunity to take market share from smaller players during the holiday season.

"Larger players in the business, Mattel and Hasbro being the biggest of the bunch, have much deeper pockets and can throw more money at the problem than a lot of independent toy companies," Zahn said.

Mattel's net sales rose 8% to $1.76 billion in the third quarter, helped by higher prices and as customers looking to keep their children entertained during the pandemic snapped up Hot Wheels cars and Barbie dolls.

Analysts had estimated sales of $1.69 billion, according to IBES data from Refinitiv.

Excluding items, the company earned 84 cents per share, beating estimates if 72 cents per share.

Supply snags will not steal Mattel's Christmas this year
 

Related Articles

Affirm Holdings Rallies After DA Davidson Upgrade
Affirm Holdings Rallies After DA Davidson Upgrade By Investing.com - Jan 28, 2022

 By Sam Boughedda Investing.com — Fintech company Affirm Holdings Inc (NASDAQ:AFRM) shares surged 16% Friday on the back of an upgrade by DA Davidson. Analyst Christopher...

S&P 500 Rides Apple Rally Higher as Tech Fights Back
S&P 500 Rides Apple Rally Higher as Tech Fights Back By Investing.com - Jan 28, 2022

By Yasin Ebrahim Investing.com – The S&P 500 rallied Friday, as blowout quarterly results from Apple put tech back into the driving seat following a recent rout amid jitters about...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email