Mattel is forecasting revenue in 2019 will be flat with the year ended Dec. 31,  due partly to its being “extremely bullish” on expected sales of Cars 4-related toys and potentially ending five straight years of revenue declines, President Richard Dickson said in releasing Q1 earnings. Disney/Pixar Animation’s Cars 4 film is slated for release in the U.S. on June 9, but Mattel launched toy sales at U.S. retailers in late March. Mattel posted $4.51 billion  in net revenue in the year ended Dec. 31, down 8% from a year earlier.

Retailers are giving Cars 4 products “significant space and “marketing” and that property coupled with continued strong sales of Jurassic World (released June 22, 2018) items will provide Mattel with a “powerful entertainment year in action figures, ”  Dickson said.

“These properties will drive excitement in the toy aisle and connectivity in toy spaces all over the world,” Dickson said.

Mattel also is banking on licensed action figures tied the South Korean K-pop group BTS to be a”lucrative new line for us, ” Dickson said.  The figures have so far garnered “incredible traffic” with the BTS fan group BTS Army “who are ultimately the ones we are attracting” during initial sales of the products. The doll collection, which was unveiled at the International Toy Fair in February. includes each of  BTS’  members: RM, Jin, Suga, J-Hope, Jimin, V and Jungkook.

Meanwhile, Mattel’s net loss narrowed to $183.7 million in Q1 ended March 31 from $311 million a year earlier as revenue fell 3% to $689.2 million, despite a rise in North American sales tied to Cars 4 and Jurassic World toys. The year-ago quarter included $86.8 million in charges related to Toys R Us’ liquidation.

North American gross sales increased 6% to $341.4 million as revenue from Barbie jumped 15% to $69.3 million. Action figure revenue jumped 25% to $96.2 million.

International sales fell 5% to $365.2 million as revenue from Fisher-Price/Thomas & Friends decreased 14% to $75.8 million. Action figure sales increased 9% to $54.1 million, while infant/toddler declined 21% $85.6 million. Vehicle revenue was down 7% to $98.4 million, partly due to a decline in Cars– related products, a decrease offset by gains in Hot Wheels.

Contact:

Mattel, Joseph Euteneur, CFO, 310-252-2000