Strong Gross Margin Performance
Adjusted gross margin increased 210 basis points to 53.1%, benefiting from supply chain improvements and cost savings.
Significant Free Cash Flow Improvement
Free cash flow in the trailing 12 months improved nearly 50% to $688 million compared to the same period a year ago.
Hot Wheels Growth and Expansion
Vehicles performance was strong, led by Hot Wheels, with a 13% growth. Hot Wheels is on track for its seventh consecutive record year.
Optimizing for Profitable Growth Program Success
The program achieved $23 million of savings in the quarter and is on track to exceed the original target with $75 million savings expected in 2024.
Positive Outlook for Holiday Season
Retailer sentiment is positive, with expectations of growth in the fourth quarter driven by increased marketing and new product launches.