EL SEGUNDO, Calif. - Mattel, Inc. (NASDAQ: NASDAQ:MAT) reported its first quarter 2024 financial results, surpassing analyst expectations with an adjusted loss per share of -$0.05, which was $0.07 better than the consensus estimate of -$0.12.
Despite a slight decline in revenue to $810 million, down 1% from the same quarter last year and below the analyst projection of $834.79 million, the stock responded positively, climbing 5% after the report.
The company's improved bottom line was primarily attributed to significant gross margin expansion, which increased by 830 basis points to 48.3% on an adjusted basis. This margin improvement was driven by lower inventory management costs, cost deflation, savings from the Optimizing for Profitable Growth program, favorable mix, and foreign exchange and lower other supply chain costs.
Chairman and CEO Ynon Kreiz commented on the quarter's performance, noting, "We are off to a good start to the year with significant gross margin expansion, positive Adjusted EBITDA, and very strong improvement in free cash flow." He added that consumer demand for Mattel's products improved throughout the quarter and that the company expects to outpace the industry and gain market share in 2024.
Looking ahead, Mattel reiterated its full-year 2024 guidance, forecasting an adjusted EPS range of $1.35 to $1.45, which brackets the analyst consensus of $1.39. This guidance reflects the company's confidence in its strategic initiatives and ongoing cost savings programs.
Mattel's CFO, Anthony DiSilvestro, also provided insights into the quarter's success, stating, "We achieved strong bottom-line results, primarily driven by margin expansion, repurchased $100 million of shares in the quarter, and are on track to meet our full year guidance."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.