Mattel Inc ( (MAT) ) has released its Q4 earnings. Here is a breakdown of the information Mattel Inc presented to its investors.
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Mattel Inc., a leading global toy and family entertainment company, is renowned for its iconic brand portfolio including Barbie, Hot Wheels, and Fisher-Price, and operates within the toy industry, offering a wide range of products including toys, content, and digital experiences.
In its latest earnings report, Mattel Inc. announced a modest growth in its fourth-quarter net sales and a significant improvement in gross margin, despite a slight annual decrease in net sales. The company also highlighted its achievements in operational excellence and strategic investments, setting a positive tone for its 80th anniversary year in 2025.
During the fourth quarter of 2024, Mattel reported net sales of $1,646 million, marking a 2% increase from the previous year, with a gross margin increase to 50.7%. The adjusted operating income rose to $161 million, and adjusted earnings per share improved to $0.35. For the full year, although net sales slightly declined by 1%, the company saw a gross margin increase to 50.8% and a substantial rise in net income to $542 million. Notably, Mattel repurchased $400 million in shares and plans to repurchase $600 million in 2025.
Mattel’s strategic focus on improving profitability, expanding its digital game investments, and enhancing shareholder value through share repurchases has been reflected in its financial results. The company achieved a notable improvement in its leverage ratio and adjusted EBITDA, indicating a strong financial position.
Looking ahead, Mattel’s management remains optimistic, projecting growth in both sales and earnings per share for 2025. The company plans to further invest in digital gaming and continue its share repurchase program, positioning itself to create long-term value for shareholders while navigating potential market challenges.
