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Jun 30, 2023
Mattel Q2 2023 Earnings Report
Mattel's financial performance was inline with expectations, marked by a significant increase in free cash flow and continued market share gains. The release of the Barbie movie was a key milestone.
Key Takeaways
Mattel reported a decrease in net sales by 12% to $1,087 million, with operating income decreasing by $62 million to $63 million. Earnings per share decreased to $0.08 from $0.18 in the prior year. The company highlighted the upcoming Barbie movie as a key milestone and reiterated its 2023 guidance.
Net sales decreased by 12% as reported, or 13% in constant currency.
Gross margin increased by 70 basis points to 45.1%.
Operating income decreased by $62 million to $63 million.
The company reiterated its 2023 guidance.
Revenue by Segment
Forward Guidance
Mattel's full year 2023 guidance remains comparable to 2022, with adjusted gross margin around 47%, adjusted EPS between $1.10 and $1.20, adjusted EBITDA between $900 and $950 million, capital expenditures between $175 and $200 million, and free cash flow greater than $400 million.
Positive Outlook
- Adjusted Gross Margin ~ 47%
- Adjusted EPS $1.10 - $1.20
- Adjusted EBITDA $900 - $950 million
- Capital Expenditures $175 - $200 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.
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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