[BENGALURU] Mattel forecast full-year revenue above estimates on Wednesday, with the corporate assured sturdy demand for its Barbie dolls and different toys will assist the toymaker climate rampant provide chain disruptions.
Shares of the California-based firm surged about 10 per cent in prolonged buying and selling after it topped Wall Avenue estimates for holiday-quarter outcomes.
Demand for toys has soared to a report excessive over the past 12 months with homebound mother and father seeking to maintain their kids entertained indoors through the pandemic, serving to toymakers increase costs to counter greater prices with out worry of a lot shopper pushback.
At the same time as provide chain bottlenecks and surging uncooked materials prices present no indicators of easing, Mattel chief govt Ynon Kreiz instructed Reuters he was assured the corporate had sufficient choices to navigate the problems, together with probably elevating costs additional.
“We’re not essentially anticipating provide chain disruptions to go away, however we do count on to have the ability to navigate additional disruption if it comes,” he mentioned.
Earlier this week, rival Hasbro Inc warned of a success to its revenue margins this 12 months, as a result of surging provide prices.
Mattel expects adjusted 2022 revenue of US$1.42 to US$1.48 per share, above estimates of US$1.39 per share, in accordance with Refinitiv IBES. It forecast internet gross sales to rise between 8 per cent and 10 per cent on a continuing forex foundation.
Nonetheless, “whereas Mattel has nice momentum with its manufacturers, there’s going to be an incredible headwind from a macro perspective,” BMO analyst Gerrick Johnson famous, citing inflationary pressures and the lapping of stimulus advantages from final 12 months.
Mattel’s income jumped 10 per cent to about US$1.80 billion within the fourth quarter, beating analysts’ estimates of US$1.66 billion.
Excluding gadgets, it earned 53 cents per share, trouncing estimates of 30 cents.
The toymaker additionally lifted its 2023 internet gross sales development forecast to excessive single digits from a earlier outlook of mid-single-digit development. REUTERS