Mattel Inc. raised its 2021 sales forecast Thursday, saying it will overcome industry-wide shipping disruptions to make way for a strong holiday season led by Barbie and Hot Wheels, sending its shares up 6% in extended trading.
The company has brought forward production, contracted more shipping capacity and secured access to additional ports to maintain supply during the most crucial time of the year for toymakers.
Although demand for toys is at an all-time high, severe bottlenecks in the global supply chain have threatened to keep store shelves empty this holiday season, leaving retailers and suppliers scrambling to find ways to speed up product shipments.
“We’ve been working through supply chain disruptions, it’s not a normal year. But even with that, we expect to have a lot of toys under the trees this Christmas vacation,” Kreiz said.
Mattel said it expects full-year constant currency net sales to increase about 15%, compared with its previous forecast of a 12% to 14% increase.
James Zahn, deputy editor of trade magazine The Toy Book, said the supply chain problems plaguing the industry also give the big toymakers an opportunity to snatch market share from the smaller players during the holiday season.
“The larger companies in the industry, like Mattel and Hasbro, have much deeper pockets and can put more money into the problem than many independent toy companies,” Zahn said.
Mattel’s net sales rose 8% to $1.76 billion in the third quarter, thanks to higher prices and as customers looking to keep their children entertained during the pandemic bought Hot Wheels cars and Barbie dolls.
Analysts had estimated sales of $1.69 billion, according to IBES data from Refinitiv.
Excluding the items, the company earned 84 cents per share, beating estimates of 72 cents per share.