Mattel, Inc. (NASDAQ:MAT) shares gained big Wednesday, on reporting third-quarter 2019 financial results after the markets closed on Tuesday.
For the third quarter, net sales were up 3%, and up 4% in constant currency, versus the prior year’s third quarter. Reported operating income was $150.1 million, an improvement of $28.2 million.
Reported Earnings per Share were $0.20, an improvement of $0.18, and Adjusted Earnings per Share was $0.26, an improvement of $0.08.
Gross sales in the International segment increased 10% as reported and 13% in constant currency, driven by growth in dolls (including Barbie, Polly Pocket® and the launch of BTS partially offset by owned brands), Vehicles (including Hot Wheels partially offset by lower sales of Jurassic World and CARS vehicles) and Action Figures, Building Sets and Games (including Toy Story 4).
Tuesday afternoon’s news release went on to say this growth was partially offset by a decline in Infant, Toddler and Preschool (including Fisher-Price Friends and Thomas & Friends).
For the third quarter, Net Sales in the North America segment were flat as reported and in constant currency, versus the prior year’s third quarter.
Reported Gross Margin increased to 46.3%, versus 42.6% in the prior year’s third quarter, and Adjusted Gross Margin increased to 46.9%, versus 43.0%.
CEO Ynon Kreiz, commented "Our third-quarter performance demonstrates the continued momentum of our multi-year turnaround and consistent progress in transforming Mattel into an IP-driven, high-performing toy company.
"We are executing very well on our strategy to restore profitability, delivering the fifth consecutive quarter where we achieved improvements in Reported Operating Income, EBITDA, gross margin and EPS."
Shares jumped $1.81, or 17.3%, to $12.39
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