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Jun 30, 2024
Mattel Q2 2024 Earnings Report
Mattel's financial performance remained stable with strategic profitability improvements.
Key Takeaways
Mattel reported a slight decrease in net sales, but demonstrated significant improvements in gross margin, operating income, and earnings per share. The company is focused on strategic growth and shareholder value, as evidenced by share repurchases and reiterated full-year guidance.
Net sales decreased by 1% as reported, but remained comparable in constant currency.
Gross margin increased by 410 basis points, reflecting savings from the Optimizing for Profitable Growth program and cost deflation.
Operating income improved by $20 million, and earnings per share increased from $0.08 to $0.17.
The company reiterated its 2024 guidance, expecting growth in both sales and earnings in 2025.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel's full year 2024 guidance remains consistent with previous expectations, focusing on maintaining comparable net sales in constant currency and achieving specific targets for adjusted gross margin, adjusted EPS, adjusted EBITDA, adjusted tax rate, and free cash flow.
Positive Outlook
- Comparable Net Sales (Constant Currency) to FY2023 ($5,441 million)
- Adjusted Gross Margin between 48.5% and 49.0% (FY2023: 47.5%)
- Adjusted EPS between $1.35 and $1.45 (FY2023: $1.23)
- Adjusted EBITDA between $975 million and $1,025 million (FY2023: $948 million)
- Free Cash Flow of approximately $500 million (FY2023: $709 million)
Challenges Ahead
- The company is operating in a macro-economic environment that may impact consumer demand.
- Guidance remains subject to market volatility and unexpected disruptions.
- Guidance remains subject to other 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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