Mattel profit up nearly 22% in third quarter
Toy maker Mattel Inc. reported a strong third quarter Tuesday, lifted by healthy sales of American Girl dolls and Fisher-Price toys just head of the crucial holiday season.
For the quarter ended Sept. 30, the El Segundo retailer posted a profit of $365.9 million, or $1.04 a share, up nearly 22% from $300.8 million, or 86 cents a share, in the same period a year ago. Sales also rose 4% to $2.08 billion.
The results beat analyst expectations and positions the toy maker nicely for the holiday months ahead when retailers can rake in up to 40% of their annual sales.
Bryan Stockton, Mattel’s chief executive, said the strong showing “represents another quarter of building momentum in the marketplace.â€
“With the holidays still in front of us, we remain focused on executing our business and driving retail sales in the all-important holiday season,†Stockton said in a Tuesday analyst call.
The competition has already begun to woo dollars among retailers peddling toys. Toys R Us rolled out a reservation program so harried parents can nab some popular items, while Wal-Mart Stores Inc. has enhanced its layaway services.
At Mattel, American Girls sales increased 16% while Fisher Price rose 6%. That offset a 4% drop in Barbie, a decline in toys linked to the movie “Cars 2†and flat sales in Hot Wheels items.
Shares of Mattel rose nearly 4% to $36.67 in trading Tuesday morning.
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