Mattel, Inc.: Will The Focus On Entertainment Vertical Expansion Lead To A Jump In Revenues?

Mattel Inc.’s first quarter 2024 financial results reflected a mixed performance, demonstrating resilience in some areas while facing challenges in others. The company reported a slight decline in net sales, down 1% both as reported and in constant currency, totaling $810 million for the quarter. Despite the dip in sales, Mattel showed considerable strength in profitability metrics. Specifically, the adjusted gross margin experienced a significant increase, up by 830 basis points to 48.3%. This improvement was primarily attributed to lower inventory management costs, cost deflation, and efficiency gains from cost-saving initiatives.