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Financial Performance - Mattel's net sales for Q1 2024 were $809.5 million, a decrease of 1% from $814.6 million in Q1 2023[83]. - Gross billings in Q1 2024 were $898.9 million, down 1% from $911.3 million in Q1 2023, with a favorable currency exchange rate impact of 1%[85]. - Net sales for the North America segment increased by $7.3 million, or 2%, to $477.8 million in Q1 2024[92]. - Net sales for the International segment decreased by $12.4 million, or 4%, to $331.7 million in Q1 2024[97]. - Gross billings for the North America segment increased by $3.6 million, or 1%, to $506.4 million in Q1 2024[95]. - Gross billings for the International segment decreased by $16.1 million, or 4%, to $392.5 million in Q1 2024 compared to $408.6 million in Q1 2023, with a favorable impact from currency exchange rates of 2%[98]. Cost and Margin Analysis - Gross margin improved to 48.0% in Q1 2024, up from 40.0% in Q1 2023, driven by lower inventory management costs and cost savings[79]. - Cost of sales decreased by $68.2 million, or 14%, to $420.6 million in Q1 2024 from $488.8 million in Q1 2023[86]. - Cost of sales decreased by $17.6 million, or 9%, to $184.1 million in Q1 2024, contributing to an increase in gross margin to 44.5% from 41.4% in Q1 2023[99]. - Other selling and administrative expenses decreased by $11.8 million to $352.9 million, or 43.6% of net sales, in Q1 2024[89]. Cash Flow and Financial Position - Operating cash flows for the trailing twelve months were $1.11 billion, contributing to a cash balance of $1.13 billion at the end of Q1 2024, compared to $461.7 million in Q1 2023[79]. - Cash flows provided by operating activities were $35.5 million in Q1 2024, a significant improvement from cash flows used of $206.4 million in Q1 2023, driven by $165.3 million in working capital improvements[108]. - Mattel's cash and equivalents decreased by $131.1 million to $1.13 billion at March 31, 2024, primarily due to $100 million in share repurchases[110]. - Total debt remained stable at $2.33 billion as of March 31, 2024, consistent with the figures from December 31, 2023, and March 31, 2023[113]. - Stockholders' equity decreased by $123.9 million to $2.03 billion at March 31, 2024, primarily due to share repurchases of $100.0 million and a net loss of $28.3 million for the first three months of 2024[114]. Shareholder Actions - The Board of Directors authorized a new $1.00 billion share repurchase program, with $100.0 million executed in Q1 2024[79]. Sales Performance by Category - Dolls gross billings decreased by 4% in Q1 2024, primarily due to lower sales of Disney Princess and Disney Frozen products[85]. - Infant, Toddler, and Preschool gross billings fell by 10%, with 7% attributed to lower sales of Baby Gear and Power Wheels products[85]. - Vehicles gross billings increased by 5%, driven by higher sales of Hot Wheels products[85]. - Dolls gross billings decreased by 7%, primarily due to lower sales of Disney Princess and Disney Frozen products, while Infant, Toddler, and Preschool gross billings decreased by 13%[98]. Cost Savings Initiatives - The "Optimizing for Profitable Growth" program aims for annual gross cost savings of $200.0 million from 2024 to 2026[79]. - The Optimizing for Profitable Growth (OPG) program aims for targeted annual gross cost savings of $200 million by 2026, with approximately 70% expected to benefit cost of sales[100]. - The OPG program has recorded cumulative severance and restructuring charges of approximately $35 million as of March 31, 2024, with realized cumulative cost savings of approximately $17 million[102]. Other Financial Metrics - Interest income increased by $10.8 million to $17.3 million in Q1 2024 from $6.5 million in Q1 2023[90]. - Sales adjustments decreased to $89.4 million in Q1 2024, representing 11.0% of net sales, down from 11.9% in Q1 2023[85]. - Sales adjustments decreased to $28.6 million in Q1 2024 from $32.3 million in Q1 2023, representing 6.0% of net sales[95]. - Sales adjustments decreased to $60.8 million in Q1 2024 from $64.5 million in Q1 2023, with sales adjustments as a percentage of net sales remaining relatively flat at 18.3%[99]. - Accounts receivable decreased by $408.6 million to $673.3 million at March 31, 2024, primarily due to seasonal declines[110]. - Inventories increased by $97.7 million to $669.3 million at March 31, 2024, primarily due to seasonal inventory build[111]. - Accounts payable and accrued liabilities decreased by $224.4 million to $1.08 billion as of March 31, 2024, from $1.31 billion at December 31, 2023, due to seasonal declines in expenditure levels[112]. Currency Impact - Currency exchange rate fluctuations impacted Mattel's results, with a one percent change in the U.S. dollar estimated to affect net sales by approximately 0.3% and have less than a $0.01 impact on net income per share[122].

Mattel, Inc. (MAT) reported first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top line missed the consensus estimate for the second straight quarter.  The company experienced robust bottom-line performance, largely propelled by increased margins and the repurchase of $100 million worth of shares during the quarter, and remained aligned with its annual targets. It anticipates ongoing advantages from the Optimizing for Profitable Growth initi ...

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 ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as we ...