(Bloomberg) -- Mattel Inc., the second-largest U.S. toy company, reported second-quarter results that soared past analysts’ expectations amid an ongoing toy-buying boom.

• Revenue rose 40% to $1.03 billion, the company said Tuesday, beating the $875.8 million average of estimates compiled by Bloomberg. Mattel reported a profit of 3 cents a share, excluding some items, better than the 6-cent loss analysts were expecting.
• See details here.

Key Insights

• The results show brands such as Barbie and Hot Wheels continue to resonate with a new generations of kids: Global billings for dolls grew 51% while toy vehicles expanded 68%. The infant, toddler and preschool category grew 15%.
• “We were up in every region and in all the key categories,” Mattel Chief Executive Officer Ynon Kreiz said in an interview Tuesday. “We do feel great about the brand momentum and retail and promotional plans heading toward holiday season.”
• Toy sales slumped at the start of the pandemic but began to climb in the second half of last year as parents with children stuck at home sought ways to entertain them. Rival Hasbro Inc. on Monday said its sales jumped 54% to $1.32 billion in the second quarter.
• Mattel, based El Segundo, California, has worked on improving profitability through cost cuts and other steps. Earnings before interest, taxes, depreciation and amortization rose more than fourfold to $130.6 million in the quarter.

Market Reaction

• The shares rose as much as 3.9% in after hours trading. Mattel had climbed 18% this year to close at $20.54 on Tuesday, exceeding Hasbro’s 8.4% rise.

Get More

• Read the statement.
• See Mattel estimates.

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