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Dec 31, 2022
Mattel Q4 2022 Earnings Report
Mattel's fourth quarter results were below expectations due to a more challenging macroeconomic environment, but the company gained market share and strengthened its financial position.
Key Takeaways
Mattel reported a 22% decrease in net sales for Q4 2022, with operating income and net income also declining. Despite these challenges, the company outpaced the industry and gained market share. For the full year, net sales remained flat, and the company strengthened its financial position by reducing debt and improving its leverage ratio.
Net sales decreased by 22% as reported, or 19% in constant currency, compared to the prior year.
Operating income decreased by $178 million, and adjusted operating income decreased by $185 million.
Earnings per share (EPS) was $0.04, compared to $0.63 per share in the prior year, while adjusted EPS was $0.18, compared to $0.53 per share.
Gross margin decreased to 43.0%, versus 49.3% in the prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel provided full year 2023 guidance, including expectations for adjusted gross margin, adjusted EPS, adjusted EBITDA, adjusted tax rate, capital expenditures, and free cash flow.
Positive Outlook
- Adjusted Gross Margin: Approximately 47%
- Adjusted EPS: $1.10 - $1.20
- Adjusted EBITDA: $900 - $950 million
- Adjusted Tax Rate: 25 - 26%
- Free Cash Flow: Greater than $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 remains subject to further volatility and any unexpected disruption, including fluctuations in foreign exchange rates, inflation, changes in global economic conditions and consumer demand, labor market fluctuations, and other macro-economic risks and uncertainties.
- Net Sales: Comparable (Constant Currency) to FY2022 of $5,435 million
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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