NASDAQ$MAT

Mattel Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Mattel's financial performance was impacted by COVID-19, but gross margin improved.

Mattel reported a decrease in net sales by 14% and gross sales by 14%. The reported operating loss was $150 million. The company is withdrawing its previous 2020 guidance due to uncertainty related to COVID-19.

  • Net sales decreased by 14% as reported, and 12% in constant currency.
  • Gross sales decreased by 14% as reported, and 12% in constant currency.
  • Reported gross margin improved by 820 basis points.
  • Mattel is withdrawing previous 2020 guidance due to COVID-19 uncertainty.

Headline financials

Total Revenue

$594M

Previous: $689M-13.8%
EPS (adj)

-$0.56

Previous: -$0.44-27.3%
Vehicles Gross Billings

$186M

Previous: $183M+1.3%
Dolls Gross Billings

$226M

Previous: $253M-10.7%
Infant, Toddler, and Preschool Gross Billings

$140M

Previous: $194M-27.5%
Action Figures, Building Sets, Games, and Other Gross Billings

$118M

Previous: $150M-21.4%
Barbie Gross Billings

$148M

Previous: $164M-9.8%
Hot Wheels Gross Billings

$159M

Previous: $151M+5.4%
Fisher-Price Gross Billings

$129M

Previous: $172M-25.3%
Capital Expenditures

-$23.9M

Previous: -$13.4M-78.6%
Free Cash Flow

-$235M

Previous: -$197M-19.1%
Net Income

-$211M

Previous: -$184M-14.7%
Operating Income

-$150M

Previous: -$131M-14.4%
Gross Profit

$255M

Previous: $240M+6.4%
Cash & Equivalents

$499M

Previous: $380M+31.4%
Total Assets

$4.8B

Previous: $5.08B-5.5%
Stock-Based Comp

$14.3M

Previous: $11.9M+20.3%

Revenue & EPS history

Mattel · Revenue · Quarterly

$594M

Q1 2020-13.8%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Mattel · $557M total across 2 segments · Q1 2020

  • North America Net Sales
    $288M-15.8%
  • International Net Sales
    $269M-11.2%

Forward guidance

Mattel is withdrawing its previous 2020 guidance due to the high level of uncertainty around the impact of COVID-19.

Tailwinds

  • Global manufacturing and distribution capacity largely restored.
  • Operations are on the right path to meet production needs for the second half of the year, leading up to and including the holiday season.
  • New promotions and marketing activation initiatives were tailored to the new consumer behaviors.
  • Joint business plans with retailers are being accelerated to compensate for the disruption and adapt to the retail environment, including transition to online retail and omni-channel experience.
  • Mattel Playroom, a free online platform that offers parents and caregivers a centralized resource for activities, expert advice, games, and content from our iconic brands was launched.

Headwinds

  • Potential impacts of the COVID-19 pandemic on business operations, financial results and financial position and on the global economy, including its impact on sales.
  • Downturns in economic conditions affecting Mattel’s markets which can negatively impact retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of Mattel’s products.
  • Other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt.
  • Potential difficulties or delays Mattel may experience in implementing cost savings and efficiency enhancing initiatives.
  • Other economic and public health conditions or regulatory changes in the markets in which Mattel and its customers and suppliers operate, which could create delays or increase Mattel’s costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+0.3%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+21.9%

Q4 2018

Best reaction

-25.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.1%+0.3%
Q4 2025-25.0%-21.8%-23.7%
Q3 2025-2.8%+1.2%+5.4%
Q2 2025-0.5%-3.2%-3.0%
Q1 2025-0.6%+0.8%+20.5%
Q4 2024+15.3%+17.9%+16.2%
Q3 2024+2.5%+8.9%+3.2%
Q2 2024+1.3%+2.6%+2.9%
Q1 2024+3.0%-1.4%-5.9%
Q4 2023+1.9%+3.5%+6.9%
Q3 2023-8.1%-7.1%-7.1%
Q2 2023+0.3%+0.6%+3.3%
Q1 2023+7.4%+5.2%+6.9%
Q4 2022-11.8%-11.1%-19.5%
Q3 2022-2.3%-5.1%-8.0%
Q2 2022-4.5%-6.5%+3.0%
Q1 2022+11.6%+11.8%+11.8%
Q4 2021+11.8%+10.5%+3.3%
Q3 2021+2.9%+3.3%+13.9%
Q2 2021+3.6%+4.5%+4.7%
Q1 2021+1.0%+4.6%-3.5%
Q4 2020+0.1%+1.4%+13.8%
Q3 2020+13.7%+14.6%+20.8%
Q2 2020-0.2%-0.4%-1.9%
Q1 2020-1.0%+2.8%+18.1%
Q4 2019-3.9%-8.3%-43.1%
Q3 2019+16.7%+15.4%+14.7%
Q2 2019+13.5%+15.9%-24.4%
Q1 2019-3.2%-2.8%-12.8%
Q4 2018+21.9%+31.9%+16.0%
Q3 2018+0.1%+2.6%+0.0%
Q2 2018-5.3%-5.6%-6.6%
Q1 2018+5.1%+4.3%+13.0%
Q4 2017+4.4%+6.4%+4.6%
Q3 2017-9.4%-8.6%+19.8%
Q2 2017-6.1%-5.7%-21.3%
Q1 2017-13.2%-11.9%-11.8%
Q4 2016-16.7%-15.6%-17.4%
Q3 2016+5.7%+7.7%-0.6%
Q2 2016+1.1%+1.3%+1.5%
Q1 2016-8.2%
Q4 2015+10.4%
Q3 2015+6.1%
Q2 2015-5.0%
Q1 2015+5.4%
Q4 2014+3.8%
Q3 2014-5.8%
Q2 2014-7.3%
Q1 2014+0.3%
Q4 2013-16.2%
Q3 2013+2.1%
Q2 2013-5.9%
Q1 2013+2.3%
Q4 2012+3.1%
Q3 2012+5.6%
Q2 2012+10.3%
Q1 2012-6.8%
Q4 2011+0.5%
Q3 2011+4.4%
Q2 2011-0.7%
Q1 2011+1.1%
Q4 2010+0.2%
Q3 2010-0.7%
Q2 2010-1.1%
Q1 2009+1.6%
Q1 2010-2.2%
Q4 2007+1.3%
Q4 2009+1.3%
Q3 2008-0.3%
Q3 2009-0.3%
Q4 2008+1.8%
Q2 2008+1.8%
Q2 2009+1.8%

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