Mattel shares jump as Barbie boosts profit

SAN FRANCISCO (AFP) – Mattel shares jumped on Thursday after the toymaker reported that its quarterly profit more than tripled with help from its iconic Barbie dolls.

Sales were up 10 per cent in the quarter that ended September 30, while Barbie gross sales leapt 29 per cent, the California-based company said in an earnings release.

Net income was USD316 million, some 348 per cent higher than the same period last year, according to Mattel.

“This was a very strong quarter for Mattel,” said Chief Executive Ynon Kreiz.

“We saw a major upswing in topline and a significant increase in profitability as we continued to make meaningful progress towards becoming an (intellectual property)-driven, high- performing toy company.”

Mattel’s growth outpaced the toy industry, which has been doing well overall, according to Kreiz.

Mattel shares were up nearly eight percent in after-market trades that followed release of the earnings report.

Feedback from shops and an early start to the holiday shopping season bode well for Mattel sales in the current quarter, Kreiz noted.