Q1 2024 Earnings Summary
Reported on Apr 23, 2024 (After Market Close)
Pre-Earnings Price$18.73Last close (Apr 23, 2024)
Post-Earnings Price$19.22Open (Apr 24, 2024)
Price Change
$0.49(+2.62%)
- Mattel is expanding into location-based entertainment with a capital-light strategy, licensing their strong brands to create highly accretive business opportunities, such as the second Mattel Adventure Park scheduled to open in Kansas City in 2026.
- Barbie continues to gain significant share in the doll category, with multiple activations planned for its 65th anniversary, including launching three new segments, expanding into the adult collector line, more content on Netflix, and a new mobile game through a partnership with Take-Two Interactive, indicating strong long-term growth potential beyond 2024.
- Hot Wheels is on track for its seventh consecutive year of growth in 2024, driven by product innovation, expansion into adult collectors, broader distribution, new content on Netflix (with the new animated series becoming a top 10 program in 69 countries), and upcoming movies in development with J.J. Abrams and Skydance, expected to continue driving engagement and growth outside the toy aisle.
- The significant gross margin expansion observed in Q1 is not expected to continue for the rest of the year. Management anticipates gross margins will be flat in the remaining quarters due to expected inflation, increased wage rates, and the absence of benefits from cost deflation and the Barbie movie impact.
- Barbie sales are expected to be marginally down in 2024 compared to 2023 as the company laps the exceptional performance driven by the Barbie movie, which may impact overall sales growth.
- Despite strong Q1 performance with significant margin improvement and cash flow generation, the company maintained its full-year guidance, indicating caution about the outlook for the rest of the year and suggesting that the Q1 beat may not be indicative of future performance.
Research analysts covering MATTEL INC /DE/.