Mattel Form 10-Q: Q2 2023

Key insights

6 takeaways · ~2 min read

01
Mattel's net sales decreased across most geographic areas and product categories in Q2 2023 compared to Q2 2022, with total net sales falling from $1,235,687 to $1,087,164. North America sales dropped from $759,291 to $624,452, and International sales decreased from $476,396 to $462,712.
02
Gross margin declined to 42.7% in Q2 2023 from 45.2% in Q2 2022, primarily due to unfavorable foreign currency exchange (210 basis points), inventory management efforts (110 basis points), cost inflation (100 basis points), and unfavorable product mix (350 basis points).
03
Mattel reported a net income of $27,187 thousand for Q2 2023, a significant improvement from a net loss of $106,471 thousand in Q1 2023.
04
Gross billings for Dolls increased by 22% in Q2 2023, driven by a 69% increase in Barbie products. However, Infant, Toddler, and Preschool gross billings decreased by 28%, and Action Figures, Building Sets, Games, and Other gross billings decreased by 39%.
05
Cash and equivalents at the end of Q2 2023 were $299,918 thousand, down from $761,235 thousand at the beginning of the period, reflecting a decrease of $461,317 thousand in cash and equivalents during the quarter.
06
Mattel's long-term debt remained relatively stable at $2,327,807 thousand as of June 30, 2023, compared to $2,323,303 thousand at December 31, 2022, after redeeming $250 million of 2013 Senior Notes in December 2022.