Toy market news

Mattel Chairman and CEO Ynon Kreiz a White House roundtable meeting with President Biden and leading U.S. CEOs to discuss supply chain and the holiday shopping season

Company reiterates full year earnings guidance at Nasdaq 45th Investor Conference

Mattel, Inc. Chairman and CEO Ynon Kreiz attended a White House roundtable meeting with President Biden and leading U.S. CEOs the day before yesterday to discuss supply chain and the holiday shopping season in the U.S.

Kreiz said: “I was encouraged by President Biden’s commitment to support the private sector in mitigating supply chain disruptions, including in particular port congestion. Mattel appreciates the Administration’s leadership in helping to focus attention and resources on this important area.

We continue to work through supply chain challenges and collaborate closely with our valued retail partners to try to meet the unprecedented demand for our product. We are confident that there will be plenty of Mattel toys for children of all ages to enjoy this holiday season.

The toy industry is growing and it is expected to continue to grow as children, parents and caregivers have made play a bigger part of their lives. We are grateful for the invitation to share information with the White House about Mattel’s perspective on supply chain and the toy industry’s preparation towards the holiday season. We look forward to continuing the dialogue.”

Separately yesterday, in speaking at the Nasdaq 45th Investor Conference, Kreiz added: “The fourth quarter is off to a good start. With less than a month of shopping days for the holidays, we feel good about the holiday season and expect to continue growing and gain market share in the fourth quarter in line with our guidance.”

Kreiz further noted that Mattel is on track to achieve its highest full-year growth rate in decades. On its third quarter 2021 earnings call, the company raised guidance for the third time this year for both Net Sales in constant currency and Adjusted EBITDA for the full year in 2021. The company expects net sales this year to increase by approximately 15% in constant currency and Adjusted EBITDA to be in the range of $900-925 million.

The Global toy industry is forecast to grow +5.4% CAGR the next five years through 2025. Global Toys have experienced 10 consecutive years of growth and all-time highs and are estimated to top $100 billion in 2023. (Source: Euromonitor Traditional Toys & Games Research 2021, USD current/nominal value, 2020 fixed exchange rate).