2023-04-26 16:21:09 ET
Mattel ( NASDAQ: MAT ) shares slid in Wednesday’s extended trading after reporting a lighter than expected year over year decline in sales, but flagged a persistent inventory overhang.
For the fiscal first quarter, the California-based toy manufacturer reported a $0.24 adjusted per share loss on $815M in revenue. Analysts had anticipated a $0.24 per share loss on $740.74M in revenue. An adjusted gross margin of 40% for the quarter reflected a decrease of 660 basis points as compared to the prior year.
“While retail inventory management impacted the first quarter’s results, the underlying business performed well. Mattel achieved growth and gained market share, per Circana. The fundamentals of our business are strong,” CEO Ynon Kreiz said. “We expect to outpace the industry, gain market share, and achieve our full year guidance.”
CFO Anthony DiSilvestro added that the company expects consumer demand for toys to remain positive for the full year despite macroeconomic concerns. As such, full-year guidance was maintained.
Net sales are expected to hit about $5.435B and adjusted EPS are expected to reach a range of $1.10 to $1.20, down from $1.25 in the year prior. The Street consensus on each stood at $5.51B and $1.26, respectively. An adjusted EBITDA forecast of between $900M and $950M for the full year suggests upside to the $919M consensus.
Shares of Mattel ( MAT ) rose about 3% just after the print before falling more than 2%. The stock remained volatile in after-hours trading.
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Mattel stock wavers as inventory issues overshadow top-line beat