2023-07-26 16:32:03 ET
The magic of Barbie the movie appears to have yet to reach originator Mattel ( NASDAQ: MAT ).
Shares fell 1.9% after the close Wednesday after the company reported second-quarter earnings.
Revenue for the period of $1.087 beat the average analyst estimate of $998.41M, while EPS of .08k compared to the estimate of -$0.03. Profit of $27M compared to the prior period's $66M.
“Our second quarter financial results were negatively impacted as retailers continued to manage inventory levels and by some overall industry softness," Chief Financial Officer Anthony DiSilvestro said in a statement.
"Retail inventory correction is mostly behind us, and we look forward to meeting consumer demand for our product, as we enter the second half of the year and all-important holiday season. Given our year-to-date performance and outlook for the balance of the year, we are reiterating our guidance.”
For the second quarter, net sales were down 12% versus the prior year’s second quarter. Reported operating income was $63 million, a decrease of $62 million, and adjusted operating income was $75 million, a decrease of $47 million.
Net sales in the North America segment decreased 18% while net sales internationally decreased 3% as reported. Even American Girl got hit, with sales down 16%.
Mattel’s full year 2023 guidance remains for $5.4B in sales, even with the down quarter.
Earlier today, MAT said president and chief operating officer Richard Dickson would step down as of August 3 to join The Gap ( GPS ). Dickson is credited with reviving the Barbie brand.
The stock is up nearly 17% over the past month as marketing for the movie has ramped up across sectors and brands.
Shares are down 3.4% over the past 12 months.
More on MAT:
- Mattel announces departure of Richard Dickson, President and COO
- Barbie-boldened Mattel renews product licensing deal with Warner Bros.
- Mattel gains after record-breaking U.S. box office haul for Barbie film
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Barbie movie magic yet to hit Mattel as Q2 disappoints