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Sep 30, 2024
Mattel Q3 2024 Earnings Report
Mattel's financial performance in Q3 2024 was marked by improved profitability and gross margin expansion, despite a slight decrease in net sales.
Key Takeaways
Mattel reported a 4% decrease in net sales to $1,844 million for Q3 2024, but demonstrated improved profitability with a gross margin increase of 210 basis points to 53.1%. The company achieved a net income of $372 million, a significant improvement compared to the previous year, and adjusted EPS increased to $1.14. Mattel is updating its full year 2024 guidance and expects topline growth in the fourth quarter.
Net sales decreased by 4% as reported, or 3% in constant currency, reaching $1,844 million.
Gross margin increased by 210 basis points to 53.1%, driven by supply chain efficiencies and cost deflation.
Net income improved significantly to $372 million, compared to $146.3 million in the prior year.
Adjusted EPS increased to $1.14 from $1.08 in the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel updated its full year 2024 guidance and expects Net Sales to be comparable to slightly down. The company is on track to achieve its full year Adjusted EBITDA and Adjusted EPS guidance, driven by strong Gross Margin performance.
Positive Outlook
- Adjusted Gross Margin ~ 50%
- Adjusted EPS $1.35 - $1.45
- Adjusted EBITDA $975 - $1,025
- Adjusted Tax Rate 21 - 22%
- Free Cash Flow ~ $500
Challenges Ahead
- We are operating in a macro-economic environment that may impact consumer demand.
- The guidance considers what the company is aware of today, but remains subject to market volatility, unexpected disruptions, and other risks and uncertainties.
- Net Sales Comparable to Slightly Down (Constant Currency)
- Mattel cautions the reader that this press release contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain.
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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