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Mattel reveals solid Q2 results

The world's largest toyco Mattel has revealed its 2010 second quarter financial results, reporting a net income of US$51.6 million, up substantially from to last year's second quarter net income of US$21.5 million.
July 16, 2010

The world’s largest toyco Mattel has revealed its 2010 second quarter financial results, reporting a net income of US$51.6 million, up substantially from to last year’s second quarter net income of US$21.5 million.

Continued solid performance was driven by the Barbie and Hot Wheels brands, as well as the contribution of sales from playthings based on Toy Story 3.

Net sales for the quarter sat at US$1.02 billion, up 13% from the US$898.2 million earned last year, including unfavorable changes in currency exchange rates of 3%. On a regional basis, second quarter gross sales increased 17% in the US and increased 9% in international markets, including unfavorable changes in currency exchange rates of 5%. Operating income for the quarter was US$69.4 million, compared to prior year’s operating income for the quarter of US$32.5 million.

For the second quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were US$653.2 million, up 21% versus a year ago. Worldwide gross sales for the Barbie brand were up 6% and worldwide gross sales for Other Girls Brands were up 3%, driven by the Disney Princess doll line. For the Wheels business, which includes the Hot Wheels, Matchbox and Tyco R/C brands, global sales were up 5%, while the Entertainment division’s sales shot up 60% for the quarter. According to Mattel the growth in the Toy Story 3 and World Wrestling Entertainment properties, as well as core games, accounted for the significant revenue gain.

With preschool division Fisher-Price end, second quarter worldwide gross sales were US$385.2 million, a 4% increase from the prior year, primarily driven by sales of products supporting evergreen entertainment properties, such as Thomas and Friends and Dora the Explorer, as well as solid performance in Fisher-Price core toys.

The American Girl Brands business unit, which offers American Girl-branded products directly to consumers, second quarter gross sales were US$58.9 million, down 4% versus last year, reflecting this year’s earlier Easter and last year’s debut of historical character Rebecca. The declines were partially offset by sales of products related to Lanie, the 2010 Girl of the Year.

About The Author
Wendy is Kidscreen’s Associate Editor. When she’s not sourcing material for the brand's daily email newsletter, she’s researching, writing and connecting with others about the newest trends in digital media. Contact Wendy at wgoldman@brunico.com.

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