NASDAQ$MAT

Mattel Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Mattel's financial performance was influenced by COVID-19, with revenue declining but exceeding expectations due to strong performance in North America, Barbie, and Games. Gross margin improved, and the company is planning for strong demand in the second half of the year.

Mattel reported a 15% decrease in net sales to $732 million for Q2 2020, impacted by COVID-19. However, the company saw growth in North America and positive POS trends, with significant improvement in gross margin. They anticipate improved revenue performance in the second half of the year.

  • Net Sales decreased by 15% as reported, and 13% in constant currency, versus prior year.
  • Gross Sales decreased by 15% as reported, and 13% in constant currency.
  • Global POS was up high-single-digits versus prior year.
  • Reported Gross Margin improved to 43.8%, with an Adjusted Gross Margin of 44.0%.

Headline financials

Total Revenue

$732M

Previous: $860M-14.9%
EPS (adj)

-$0.26

Previous: -$0.25-4.0%
Vehicles Gross Billings

$159M

Previous: $214M-25.9%
Dolls Gross Billings

$261M

Previous: $273M-4.5%
Infant, Toddler, and Preschool Gross Billings

$200M

Previous: $252M-20.7%
Action Figures, Building Sets, Games, and Other Gross Billings

$195M

Previous: $223M-12.4%
Barbie Gross Billings

$199M

Previous: $187M+6.9%
Hot Wheels Gross Billings

$137M

Previous: $175M-22.1%
Fisher-Price Gross Billings

$176M

Previous: $222M-20.7%
Capital Expenditures

-$34.4M

Previous: -$27.2M-26.1%
Free Cash Flow

-$144M

Previous: -$135M-6.1%
Net Income

-$109M

Previous: -$108M-1.1%
Operating Income

-$46.1M

Previous: -$51.4M+10.3%
Gross Profit

$321M

Previous: $341M-6.0%
Cash & Equivalents

$462M

Previous: $194M+137.8%
Total Assets

$4.99B

Previous: $5.05B-1.1%
Stock-Based Comp

$9.14M

Previous: $12.4M-26.6%

Revenue & EPS history

Mattel · Revenue · Quarterly

$732M

Q2 2020-14.9%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Mattel · $704M total across 2 segments · Q2 2020

  • North America Net Sales
    $433M+2.4%
  • International Net Sales
    $271M-32.8%

Forward guidance

Based on current momentum, POS trends, and low retail inventories, Mattel anticipates strong demand and improved revenue performance in the second half of the year, including the holiday season.

Tailwinds

  • Strong demand for products is expected.
  • Positive POS trends are being observed.
  • Retail inventories are low.
  • Improved revenue performance is anticipated in the second half.
  • The company is planning for the all-important holiday season.

Headwinds

  • Potential impacts of the COVID-19 pandemic on business operations and the global economy.
  • Difficulties in implementing cost savings and efficiency enhancing initiatives.
  • Economic and public health conditions or regulatory changes in the markets.
  • Currency fluctuations which can lower net revenues and earnings.
  • Risk of product recalls or product liability suits and costs associated with product safety regulations.

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 Q2 2020

Historical avgQ2 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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