With Spielwarenmesse in the rearview mirror and Toy Fair New York on the horizon, toy industry earnings season is back in action.
Mattel kicked off the season after the bell today with fourth quarter and full-year 2024 earnings.
In Q4, sales grew 2% to $1.6 billion as gross margin spiked to 50.7%. For 2024, net sales slipped 1% to $5.3 billion as gross margin hit 50.8%. Operating income for the year grew $133 million to $694 million.
2024 was a year of strong operational excellence for Mattel with topline growth in the fourth quarter. Our priorities for the year were to grow profitability, expand gross margin, and generate strong free cash flow and we achieved all three objectives, well ahead of expectations. As we progress through 2025, our 80th anniversary year, we look forward to growing both top and bottom line and continuing to successfully execute our multi-year strategy.”
For the year, gross billings in North America and the International segments fell 1% due to declines in Dolls (primarily Barbie) and Infant, Toddler, and Preschool (primarily Baby Gear and Power Wheels). The declines were partially offset by 9% worldwide growth in Vehicles (primarily Hot Wheels) while growth in Action Figures, Building Sets, Games, and Other (primarily Action Figures and Games) helped North America.
Additional Highlights:
- Vehicles: Hot Wheels achieved its seventh consecutive year of record growth. Disney•Pixar Cars and Matchbox also grew.
- Infant, Toddler, and Preschool: Fisher-Price returned to growth driven by Little People and last year’s launch if Fisher-Price Wood. Declines were due to the exit of baby gear and the sunsetting of Power Wheels.
- Dolls: Wicked and Moana 2 products performed well alongside growth in American Girl and Monster High. Barbie declined, but still led dolls.
- Challenger Categories: UNO achieved its highest year on record. Games saw double-digit growth. WWE and Minecraft drove growth in action figures.
Mattel also revealed its 2025 guidance with net sales expected to rise 2-3% this year.
The company will hold an earnings call at 5 p.m. ET today. This story will be updated with additional information…
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