Toy giant Mattel exceeded expectations in its third-quarter earnings report, driven by the continued success of its iconic Barbie brand. The company reported adjusted earnings of $1.08 per share, surpassing analysts' consensus estimate of 86 cents. Additionally, Mattel's sales reached $1.92 billion, a 7% year-over-year increase in constant-currency terms, outperforming Wall Street's projected $1.84 billion.
The strong growth in doll sales contributed significantly to Mattel's success, with a 24% rise in constant-currency gross billings compared to the previous year. This growth was primarily fueled by the popularity of Barbie, Disney Princesses, and Monster High.
CEO Ynon Kreiz credited the success to the global cultural phenomenon created by the Barbie movie, calling it a "key milestone for Mattel." As a result of the strong performance, the company increased its projected adjusted earnings per share for the fiscal year to a range of $1.15 to $1.25, higher than previously expected.
Although initially showing a positive reaction to the quarterly report, Mattel's stock experienced a 6.7% decline in after-hours trading.
