June 24, 2024

Taylor Daily Press

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Toy giant Mattel expects 'strong holiday season' to avoid supply issues |  News

Toy giant Mattel expects ‘strong holiday season’ to avoid supply issues | News

Toy maker Mattel, better known as Barbie and Fisher-Price, is less affected by supply problems with raw materials and toys than the company itself thought. It expects a strong holiday season and is raising its revenue forecast for the entire fiscal year.

Toy sales slumped at the start of the coronavirus crisis, but recovered as lockdowns lengthened and people working from home had to keep their children occupied. Now, delivery issues are causing uncertainty, but Mattel is less affected than expected. “We are fulfilling the demand,” said CEO Yinon Knez. “Maybe it’s not asking for everything, but more than we expected.”

The company purchased raw materials at an accelerated pace, arranged space for containers in advance, and also set prices for this early. In addition, Mattel has expanded the number of outlets from which it distributes its games. All these steps should ensure that the costs are not too high and that deliveries are guaranteed.

In the third quarter, Mattel achieved a turnover of nearly $1.8 billion, converting more than 1.5 billion euros. That was 8 percent more than the previous year. Profits rose 46 percent to $813 million (698 million euros), although the company needed significant tax gains to do so. Even without that windfall, profits rose, but by a modest 2 percent.

Mattel expects a good end to this year. The annual sales volume should be about 15 percent higher than it was in 2020. So far, it has been based on an increase in sales of 12 to 14 percent.

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