NEW YORK – Mattel says cost cuts and higher revenue from toys, including Monster High dolls and Fisher-Price, helped raise net income 22 percent in the third quarter, providing a bit of early holiday cheer for the largest U.S. toy maker.
The results topped Wall Street expectations and sent its shares 5 percent higher Tuesday.
They also indicate that Mattel is outperforming its rivals so far as it heads into the crucial holiday season, when toy makers can earn up to 40 percent of annual revenue.
CEO Bryan Stockton said the quarter shows the company is “building momentum in the marketplace through share gains and strong shipments across our portfolio of brands and countries.” But he said the company is solidly focused on the holidays. “With the holidays still in front of us, we remain focused on executing our business and driving retail sales in the all-important holiday season,” he said.
There was one lump of coal: The stronger dollar and tough competition in the doll aisle were a drag on Barbie, usually one of Mattel’s top performers. Revenue from that brand fell 4 percent. But Mattel’s other doll brands’ revenue surged, including Monster High, its hit line of monster-inspired dolls, and American Girl dolls.
East Aurora-based Fisher Price’s sales increased 6 percent, to $790.4 million, while American Girl sales rose 16 percent.
News Business Reporter Matt Glynn contributed to this report.