Along with the announcement of the company’s quarterly sales, Mattel Inc revealed its intention to turn its collector brands into non-fungible tokens (NFTs).
COVID-19 vaccination and the government’s fresh stimulus checks seem to have boosted US consumers’ confidence. Mattel is not losing despite the usually slow post-holiday months. Instead, the toy company recorded a 47% jump in quarterly sales with Barbie dolls and Hot Wheels cars products being the best sellers.
The constraining stay-at-home is expected to have contributed to the surging toys sales. Quoted from Reuters, Mattel posted net sales of $874.2 million in the first quarter alone. This figure exceeds analysts’ average estimate at $684.2 million, Refinitiv’s IBES data revealed. Barbie, Mattel’s biggest brand, noted an 87% increase in overall gross billings to $276.2 million.
This became the ground reason for Mattel to jump in NFTs. NFTs have been gaining popularity among companies, especially those related to the art department. Artists and musicians have reaped millions of dollars by transforming their artworks into NFTs. Not wanting to lose the chance, Mattel too showed its interest to register some of its collector brands into non-fungible tokens.
Quarter achievement exceeds expectation, Mattel aims higher
Following the news, California-based Mattel leveraged its annual sales forecast to 8% from previously 6%. Additionally, Mattel is expecting strong sales for the holiday season this year.
In regard to this, Chief Executive Officer Ynon Kreiz commented, “Toys continue to prove their importance to parents as to where they choose to spend their disposable income”.
“We are seeing a strong start to the second quarter including the Easter week and we’re planning for another great holiday season,” Kreiz continued.
Accordingly, Mattel lost 10 cents per share, which already excludes certain items. Mattel still managed to maintain the shares price higher than analysts’ expectation at 35 cents per share loss.
Read also: Fortune Selling Toys: Chinese Millennial Has $3.2 Billion
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