A day after Reuters reported that Mattel had received a private equity buyout offer from L Catterton – the firm that has already backed the luxury goods company, LVMH – it reported mixed Q2 2024 results on Tuesday 23 July.
Net sales were USD 1,080, down 1% on the previous year with a gross margin of 49.2%. Operating income is up at USD 83 million, which is USD 20 million up from last year – net income was USD 57 million, an improvement of USD 30 million.
“Mattel is well positioned for the second half, with new product innovation and increased retail support”
Ynon Kreiz, Mattel’s chairman and CEO, said it was a good quarter: “Mattel is well positioned for the second half, with new product innovation and increased retail support. We are in a strong financial position to execute our strategy to grow our IP-driven toy business and expand our entertainment offering.”
According to financial media sources, the takeover offer from L Chatterton could prompt other potential suitors to consider bids for Mattel, including rival Hasbro, which has become aware of L Catterton’s approach and is discussing whether it should also submit an offer. Hasbro and Mattel have held a number of potential merger talks over the years.
In an interview on CNBC about the Q2 results, Ynon Kreiz said: “We don’t comment on speculation. What I can say is that we’re very confident in Mattel’s strategy and our ability to create long-term shareholder value as a standalone company.”
