Investors appreciate the progress it's making toward profitability.Shares of toy company Mattel (MAT 3.36%) jumped on Wednesday morning following its financial report for the fiscal first quarter of 2024. As of noon ET, Mattel stock was up almost 5%.Investors look past some shortcomingsThe stock market's positive reaction to Mattel's financial results is a little surprising. Q1 net sales were down 1% year over year to $810 million, which was below expectations. The company's gross margin had a strong improv ...

Financial Data and Key Metrics - Net sales declined 1% as reported and in constant currency [11] - Adjusted gross margin increased 830 basis points to 48 3% [11] - Adjusted EBITDA improved by $67 million from a negative $14 million to a positive $54 million [11] - Free cash flow improved by $254 million [11] - Cash balance at the end of the quarter was $1 1 billion after repurchasing $100 million of shares [12] - Adjusted EPS improved by $0 19 to a loss of $0 05 compared to a loss of $0 24 in the prior year [18] - Cash from operations improved by $242 million to a source of $35 million compared to a use of $206 million in the prior year [25] - Trailing 12-month free cash flow was $964 million, an increase of $777 million compared to the prior year [26] Business Line Performance - Gross billings increased in North America, Latin America, and Asia Pacific, with a decline in EMEA [12] - Dolls declined 5% with POS increasing high-single-digits, primarily due to Disney Princess and Disney Frozen [19] - Barbie gross billings were comparable to the prior year with POS declining low-single digits [19] - Vehicles and Hot Wheels increased 4% with POS increasing mid-single digits [19] - Infant, Toddler, and Preschool category declined 11% with POS down high-single-digits, primarily due to Baby Gear and Power Wheels [21] - Games performance was strong, with Uno being the number one card game property [15] Market Performance - North America gross billings increased 1% with POS increasing low-single digits [22] - EMEA declined 13% due to retail inventory reductions and weakening of the Turkish lira [22] - Latin America increased 1% with POS declining low-single digits [22] - Asia-Pacific increased 15%, driven by gains in Australia, New Zealand, and South Asia [22] Strategy and Industry Competition - The company is executing its strategy to grow its IP-driven toy business and expand its entertainment offering [13] - The company expects to benefit from innovation across the toy portfolio, market share gains, and progress on entertainment projects [13] - The company is targeting $200 million of annualized cost savings between 2024 and 2026 through its optimizing for profitable growth program [13] - The company expects the toy industry to decline in 2024 but at a lesser rate than 2023 and aims to outpace the industry and gain market share [12] Management Commentary on Operating Environment and Future Outlook - The company is in the strongest financial position it has been in years and is on track to achieve its full-year guidance [17] - The company expects to grow sales and earnings in 2025 [17] - The company is operating in a macroeconomic environment that may impact consumer demand [29] Other Important Information - The company is leveraging AI for cost-saving opportunities and product development [60][62] - The company is reducing its manufacturing footprint in China, with 50% of products currently made in China, down from the industry average of 80-85% [101] Q&A Session Summary Question: POS trends and expectations for the year - POS for the total company was up low-single digits in Q1 with improving trends, including some benefit from the Easter holiday [33] - The company expects shipping trends in 2024 to align with historical trends, with about a third of gross billings in the first half and two-thirds in the second half [33] Question: Hot Wheels growth drivers - Hot Wheels growth is driven by product innovation, expansion into adult collectors, and new content on Netflix [35] - The company expects Hot Wheels to continue growing in 2024 [55] Question: Disney Princess dynamics - The decline in Disney Princess sales was primarily due to inventory correction following last year's launch [40] Question: Share repurchases and M&A - The company plans to continue share repurchases in 2024 under its $1 billion multi-year share repurchase program [43] - The company is considering targeted investments in its entertainment verticals to accelerate its strategy [45] Question: Gross margin drivers and expectations - The significant gross margin expansion in Q1 was driven by lower inventory management costs, cost deflation, and savings from the optimizing for profitable growth program [48] - The company expects gross margin to be in the range of 48 5% to 49% for the full year [49] Question: Barbie outlook for 2024 - Barbie is expected to be marginally down for the year but will continue to grow beyond 2024 [52] Question: Retail inventory and cadence of the year - The company expects tailwinds from lapping last year's retail inventory declines, with benefits more pronounced in Q2 [57][91] Question: AI and cost-saving initiatives - The company is leveraging AI for cost-saving opportunities and product development, with $17 million of savings generated in Q1 [60][62] Question: Digital gaming and Mattel163 - The company is focusing on extending its physical play to the virtual world through digital games and experiences [64] - The company is looking to do more self-publishing of mobile games based on its IP [65] Question: Retail sentiment and consumer demand - Retailers are leaning into the toy category due to its experiential nature and affordability [84] - The company expects the industry to decline in 2024 but at a lesser rate than 2023 [85] Question: M&A strategy - The company is being thoughtful and prudent in its M&A strategy, focusing on long-term value creation and risk management [87] Question: American Girl and Imaginext - American Girl grew in Q1 and is now part of the North American commercial business [97] - Imaginext is now part of the Preschool Entertainment category [98] Question: Manufacturing footprint in China - The company is reducing its manufacturing footprint in China, with 50% of products currently made in China, down from the industry average of 80-85% [101] Question: Demand across price points - The company is not seeing any specific trends in demand across price points [103] Question: Adventure park economics - The company is taking a capital-light approach to its adventure parks, licensing its brand and participating in the economics of the park [105]

Mattel (MAT) reported $809.5 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 0.6%. EPS of -$0.05 for the same period compares to -$0.24 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $837.62 million, representing a surprise of -3.36%. The company delivered an EPS surprise of +58.33%, with the consensus EPS estimate being -$0.12.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

First Quarter 2024 Earnings (Unaudited Results) April 23, 2024 Cautionary Note Regarding Forward-Looking Statements / Presentation Information Mattel cautions the viewer that this presentation contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include statements regarding Mattel’s guidance and goals for ...

NEWS RELEASE Exhibit 99.1 MATTEL REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS First Quarter 2024 Highlights Versus Prior Year EL SEGUNDO, Calif., Apr. 23, 2024 – Mattel, Inc. (NASDAQ: MAT) today reported first quarter 2024 financial results. Ynon Kreiz, Chairman and CEO of Mattel, said: "We are off to a good start to the year with significant gross margin expansion, positive Adjusted EBITDA, and very strong improvement in free cash flow. Trends in consumer demand for our product improved through the quarter ...

Mattel, Inc. (MAT) is experiencing a boost in sales, particularly in the Hot Wheels brand, and enjoying a varied product range in the North America segment. Additionally, the company's efforts to diversify its product portfolio and expand digitally contribute positively to its performance.The Zacks Rank #2 (Buy) company’s earnings in 2024 is likely to witness growth of 11.4% year over year. In the past 60 days, estimates for 2024 earnings have witnessed upward revisions of 4.6%.  Let’s delve deeper.Growth D ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-05647 ______________________________________________________ MATTEL, INC. (E ...

Core Insights - Mattel, Inc. has partnered with Atlantis Paradise Island to create a Barbie-themed immersive experience called "Barbie Bahamas Beach Vacation: Where Atlantis Dreams Come True" in celebration of Barbie's 65th anniversary [1][2] - The experience will debut on Memorial Day weekend and will include various Barbie-themed attractions, accommodations, and culinary offerings [1][2] Group 1: Partnership Details - The partnership marks the first time Barbie-themed experiences will be available in the Caribbean and the Bahamas [1] - The immersive experience will feature playsets, Instagrammable vignettes, themed doll boxes, and a pink carpet leading to an extravagant Barbie ball pit [1] - Guests can book Barbie-themed beachside accommodations that incorporate iconic design elements associated with Barbie [1] Group 2: Culinary and Entertainment Offerings - The Coral's Sun & Ice café will be transformed into a Barbie culinary adventure with an exclusive menu featuring themed desserts and drinks [1] - Atlantis Kids Adventures will provide Barbie-themed activities, including cooking classes [1] - Complimentary Barbie movie nights will be offered poolside and in the Atlantis Theater [1] Group 3: Atlantis Paradise Island Overview - Atlantis Paradise Island has a 25-year history of providing world-class experiential entertainment and has recently undergone multimillion-dollar renovations [2] - The resort features a variety of dining options, including restaurants led by Michelin-star chefs, making it unique in the Caribbean [2][6] - Atlantis offers a range of amenities, including Aquaventure waterpark, marine habitats, and various recreational facilities [7][8]