During a conference call with analysts, toymaker Mattel reported a narrower than expected loss and raised its sales forecast, defying Wall Street expectations.
Toymaker Mattel said Thursday that its sales nearly doubled in the first quarter as parents spent more on toys for their children, helped by more disposable income owing to government stimulus checks.
Typically, the first quarter is a weak period for toy sales, as it follows the influx of sales ahead of Christmas.
Mattel’s Q1 revenue rose 47% to $874.2 million from $594 million a year ago, beating analysts’ expectations of $684.2 million while its net loss narrowed to $115.2 million, or 33 cents per share, from a loss of $210.7 million, or 61 cents per share, a year earlier.
“We are strengthening our position as a consistent leader in the toy industry,” said CEO Ynon Kreiz during the conference call. “We believe we are very well-positioned to improve profitability and accelerate topline growth in 2021 and beyond.”
The company’s stock rose more than 7% in extended trading.