Mattel chief confident ahead of results - ToyNews

Mattel chief confident ahead of results

Bob Eckert has outlined the firm's expectations during a presentation to analysts.
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Eckert commented during the presentation, which was broadcast online: "Obviously, we have to see how the costs play out, but right now, I'd say we haven't really been surprised by anything."

When he was asked if business conditions are better or worse since Mattel reported its first-quarter results in April, Eckert said: "I don't see anything that's really been a game changer in terms of what we expect this year."

Mattel anticipated higher costs as it has priced its toys, averaging a low to mid-single digit price increase so far, Eckert said.

And while the strengthening dollar relative to the euro hurts revenue and profit, strength in other currencies has largely offset the impact, he said.

The firm's execs have outlined a long-term goal to grow sales by low to mid-single digit percentages and also reiterated the long-term profitability goals, targeting gross profit at about 50 per cent of revenue and operating profit at 15 to 20 per cent of revenue.

Mattel also intends to maintain its advertising spending at around 11 to 13 per cent of sales and to limit selling, general and administrative expenses at about 20 per cent of sales. Executives did not define 'long term.'

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