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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.
Mattel
Mattel
Mattel Revenue by Segment
Mattel Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
EMEA Revenue
CapyFin.comLatin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com 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