Fisher-Price toys and lower costs have helped toymaker Mattel reach profit in its first full quarter under the guidance of the new chief executive, Christopher Sinclair.
Sales of Fisher-Price toys has risen nine per cent in the second quarter, totaling a third of its total sales.
This is in contrast to the 17 per cent dip in Fisher-Price sales in the same period last year.
Meanwhile, Mattel’s gross margin improved to 47.9 per cent in the second quarter ending June 30th, as costs fell to ten per cent under Sinclair’s mission to streamline the firm’s brand portfolio, increase spending on advertising and make marketing efforts more effective.
Mattel is now on track to achieve the high end of its cost-cut target range to $250 million to $300 million by the end of the year, said CFO Kevin Farr in a post-earnings call.
The firm has also revealed a renewed partnership with Walt Disney for the Toy Story films, gaining global rights for toys based on the fourth installment of the franchise due in 2017.
Elsewhere, Mattel president, Richard Dickson said that the firm was making progress to ‘get Barbie sales back on track.’
Mattel is also reportedly gearing up for the hype surrounding next year’s Batman vs. Superman movie for a spike in toys based on DC Comics characters.