Shares of Mattel Inc. fell more than 4% in Thursday’s extended session after the toymaker posted quarterly profit above Wall Street expectations but saw sales of its American Girl business fall sharply by 20%.

MattelMAT,
+2.81%
said it earned $66 million, or 18 cents per share, in the second quarter, contrasting with a loss of $5.5 million, or 2 cents per share, in the year-ago period.

Sales rose 20% to $1.2 billion, but sales in Mattel’s American Girl segment fell 19%.

Mattel “benefits from strong retail partnerships and looks forward to meeting the anticipated increase in consumer demand for our product as we enter the second half of the year and the all-important holiday season,” said general manager Ynon Kreiz.

The company maintained its guidance for the year, but added caveats. The 2022 guidance takes into account “anticipated supply chain disruptions of which the company is aware today, but remains subject to any unforeseen supply chain disruptions, currency exchange rate fluctuations, inflation, changes in global economic conditions and consumer spending, labor market fluctuations and other macro-economic risks and uncertainties,” the toymaker said.

Mattel guided sales growth between 8% and 10% over 2021 sales and adjusted earnings per share between $1.42 and $1.48. Capital expenditures are higher than last year, between $175 and $200 million, compared to $151 million in 2021.

Shares of Mattel ended the regular trading day up 2.8%.