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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.
Mattel
Mattel
Mattel Revenue by Segment
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com 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
- Labor market fluctuations, and other macro-economic risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income