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Mar 31, 2023
Mattel Q1 2023 Earnings Report
Mattel's financial performance was impacted by retail inventory management in the first quarter of 2023, with net sales decreasing by 22% and operating loss reported at $115 million.
Key Takeaways
Mattel reported a decrease in net sales by 22% to $815 million for Q1 2023, with an operating loss of $115 million. The company's performance was affected by retail inventory management, though the underlying business fundamentals remain strong. Mattel expects to outpace the industry and achieve its full-year guidance, with continued share repurchases reflecting confidence in its strategy.
Net sales decreased by 22% as reported, or 21% in constant currency, versus the prior year.
Reported Operating Loss was $115 million, a decrease of $195 million, and Adjusted Operating Loss was $87 million, a decrease of $177 million.
Gross Margin decreased to 40.0%, versus 46.4% in the prior year, and Adjusted Gross Margin decreased to 40.0%, versus 46.6%.
Company reiterates 2023 guidance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel’s full year 2023 guidance remains:
Positive Outlook
- Net Sales Comparable (Constant Currency) $5,435 million
- Adjusted Gross Margin ~ 47%
- Adjusted EPS $1.10 - $1.20
- Adjusted EBITDA $900 - $950 million
- Free Cash Flow > $400 million
Challenges Ahead
- The company is operating in a challenging macro-economic environment with higher volatility, including inflation, that may impact consumer demand.
- Mattel’s guidance takes into account what the company is aware of today but remains subject to further volatility and any unexpected disruption
- Fluctuations in foreign exchange rates
- Changes in global economic conditions and consumer demand
- Labor market fluctuations, and other macro-economic risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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