Mattel Q3 2021 Earnings Report
Key Takeaways
Mattel reported strong Q3 2021 financial results, with net sales up 8% and significant gains in market share. The company successfully navigated global supply chain disruptions and raised its 2021 guidance for net sales and adjusted EBITDA.
Net sales increased by 8% as reported, and 7% in constant currency, compared to the prior year.
Reported operating income rose by $10 million, while adjusted operating income improved by $4 million.
The company successfully navigated ongoing global supply chain disruption and gained market share.
Mattel raised its 2021 guidance for net sales in constant currency and adjusted EBITDA.
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Mattel Revenue by Segment
Forward Guidance
Full-year Net Sales, in constant currency, are expected to increase by approximately 15% versus the prior year. Adjusted Gross Margin guidance remains unchanged at a range of 47.6% to 48.1%. Adjusted EBITDA guidance is increasing by $25 million to a range of $900 to $925 million.
Positive Outlook
- Net Sales are expected to increase by approximately 15% versus the prior year.
- Adjusted Gross Margin guidance remains unchanged at a range of 47.6% to 48.1%.
- Adjusted EBITDA guidance is increasing by $25 million to a range of $900 to $925 million.
- Capital expenditures guidance remains unchanged at a range of $150 to $175 million.
- Company expects to grow for the balance of the year and have a strong holiday season.
Challenges Ahead
- Guidance takes into account anticipated supply chain disruption.
- Guidance remains subject to market volatility.
- Guidance remains subject to macro-economic risks and uncertainties.
- Guidance remains subject to risks associated with COVID-19.
- Unexpected supply chain disruption could negatively impact performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income