Maybe Barbie won’t get stuck on a slow boat from China this Christmas, after all.
Shares of toy giant Mattel — which makes the iconic Barbie dolls — surged as much as 8 percent in early Friday trading after the company said it had a handle on supply-chain disruptions that are roiling the retail industry in advance of the crucial holiday season.
Shares of the El Segundo, Calif.-based company, whose third-quarter profits beat Wall Street’s expectations, were recently up 2.6 percent at $20.85.
“We are entering the fourth quarter with great momentum, and are off to a good start toward a strong holiday season,” Mattel chief executive Ynon Kreiz said on an earnings call Thursday.
As other toy companies fret about having enough toys on store shelves because of disruptions in the supply chain, Kreiz said Mattel should be able to meet most of the consumer demand for its products, which also include Hot Wheels, Fisher Price toys and American Girl.
Kreiz said the company has invested in more manufacturing sources for its “critical product lines,” expedited procurement of raw materials and “contracted ocean freight capacity and rates in advance” and secured access to additional ports and shipping lanes.
“Our confidence in management’s execution capabilities continues to grow,” wrote DA Davidson analyst Linda Bolton Weiser in a Friday research note. She reiterated the firm’s buy rating of Mattel and praised its “competency in managing through supply chain challenges.”
Mattel said it now expects sales to increase 15 percent for the full year, up from its previous forecast of 12 percent to 14 percent.
The company posted third-quarter sales of $1.8 billion, up 8 percent over the same period in 2020, which was already a strong holiday season for toys.
Some of the growth, however, was boosted by price increases, which the company did not elaborate on “for competitive reasons” but added that there has been no negative response from consumers.
Indeed, consumer spending has not slowed down despite higher prices, according to government data — at least not yet.