The K-Pop sensation, BTS has helped Mattel to a positive third quarter result, after the launch of the band’s own doll line helped gross sales in the international segment grow by ten per cent.
The pop outfit was joined by other strong performing licenses in the Mattel portfolio, including Barbie, Polly Pocket and Toy Story 4. The growth was partially off-set by a decline in infant, toddler and pre-school that included a drop in Thomas & Friends.
Mattel has also reported a slowing down of one time top performing brands Jurassic World and Disney’s Cars.
The toymaker’s third quarter net sales hit $1,481.6 million, up three per cent on the year prior, while gross sales hit $1,656.9 million. The dolls category was up five per cent, while Barbie’s gross sales rose ten per cent.
Ynon Kreiz, chairman and CEO, Mattel said: “Our third quarter performance demonstrates the continued momentum of our multi-year turnaround and consistent progress in transforming Mattel into an IP-driven, high-performing toy company.
“We are executing very well on our strategy to restore profitability, delivering the fifth consecutive quarter where we achieved improvements in Reported Operating Income, EBITDA, gross margin and EPS. We are starting to see positive revenue trends with growth for the second quarter in a row as reported, and for the third straight quarter in constant currency. And we continue to make meaningful progress in laying the groundwork to capture the full value of our IP.
“We are encouraged by this momentum, as we remain focused on execution and the creation of long-term shareholder value.”
Joseph Euteneuer, CFO, Mattel added: “Our results demonstrate meaningful progress across all of our financial metrics. The improvement was driven by revenue growth and Structural Simplification savings. The company’s great performance in the third quarter and year-to-date, along with our ongoing consistent execution, will allow us to continue to drive value on a going forward basis.”
Worldwide gross sales for action figures, building sets and games were $311.4 m, up 12 per cent versus the prior year’s third quarter, driven by Toy Story 4 and MEGA partially offset by Jurassic World.