Mattel Inc (NASDAQ:MAT) Q1 2020 Earnings Conference Call - Final Transcript

May 05, 2020 • 05:00 pm ET

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Mattel Inc (NASDAQ:MAT) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] And our first question comes from the line of Tami Zakaria with JPMorgan.

Analyst
Tami Zakaria

Hi. Hope everyone is doing well and thanks for taking my questions. So my first question is, could you talk about the April POS trends by geography and also which categories are driving the strength you've seen in the past two weeks of April?

Executive
Joe Euteneuer

Sure. When you think about -- you're talking about quarter-to-date in April, remember you have Easter in there. So if you think about the US, when you adjust it for the Easter holiday, so you can get a comparable year-over-year, we have a high single-digit growth overall for all brands. Dolls were up double digits. Dolls, excluding American Girl, was up double digits. Infant, Toddler and Preschool is up double digits. And action, building figures and games were up double digits.

Executive
Ynon Kreiz

And Tami, let me expand a little bit, for total Mattel, based on our internal POS normalized for Easter seasonality, we are showing improvement in April compared to March. And just to emphasize what Joe was saying it's particularly strong in the US, where in the last two weeks, we saw double-digit growth in POS and triple-digit growth online, so strong momentum, especially in the US. We still don't have full data for international. But what we see in the US is strong so far.

Analyst
Tami Zakaria

Got it. Thank you. And so my follow-up question is, as you think about the second quarter, should we expect operating losses to be worse than what you did in the first quarter given the ongoing store closures? Or do you have expense levers to pull to have a better operating losses than the first quarter?

Executive
Ynon Kreiz

Yes, we're not giving guidance yet for the second quarter. And given the uncertainty of the disruption, we can't be more specific at this time. As we said on the -- in the prepared remarks, the retail disruptions we faced in March are still present or were still present in April, and I expect it to continue over a longer period of time. So it's not that it's getting worse, but rather it's the same type of disruption over a longer period of time, but we are seeing early trends of improvement and given the fact that we are seeing improvement in supply chain and early signs of demand, the challenge now is getting product in the hands of consumers. This is what we see the challenge is. And as retail continues to improve and markets reopen, we expect things to get better as we move towards the second half.

Analyst
Tami Zakaria

Got it. That's super helpful. Thank you so much.

Operator
Operator

Thank you. And our next question comes from the line of Tim Conder with Wells Fargo.

Analyst
Tim Conder

Thank you, gentlemen. Just a couple of things, maybe following on the prior question. If we look at this point, I know Ynon you don't have formal guidance there. Would you anticipate the back half of the year at this point given the