Net sales for Mattel – the world’s largest toy company – rose during the company’s third quarter by 9% to US$2 billion. The spike was largely driven by this year’s Cars 2 property and strong performances by Barbie and the new Monster High dolls.
The company reported quarterly profits of US$300.8 million compared to last year’s US$283.3 million.
On a regional basis, third quarter gross sales increased 6% in the US and by 13% in international markets. However, the company saw a larger-than-expected fall in its gross margins, which dropped 330 basis points to 47.8%. Operating income for the quarter also rose to US$397.6 million, compared to last year’s US$358.6 million.
Global sales for the Mattel Girls & Boys Brands business unit were US$1.34 billion, up 15% versus a year ago. Sales for the Barbie brand were up 17%, while sales for Other Girls Brands were up 32% largely due to Monster High and Disney Princess doll lines. Sales for the Entertainment business, which includes Radica and Games and Puzzles, were up 14% for the quarter.
Sales for the company’s Fisher-Price brands remained relatively flat at a 1% gain.
As the company gears up for the holiday season, it says it anticipates continued growth for its Monster High franchise, which launched last year.