April 20 Mattel Inc, the world's biggest
toymaker, reported a bigger-than-expected drop in quarterly
sales on Thursday, hurt by weak demand for key brands Barbie and
Fisher-Price and due to big discounts to move inventory left
after weak holiday sales.
Mattel's shares tumbled nearly 7 percent to $23.50 in
trading after the bell on Thursday.
The company's first-quarter sales dropped 15.4 percent to
$735.6 million, their steepest fall since 2009, and well short
of analysts' average estimate of $801.4 million, according to
Thomson Reuters I/B/E/S.
"Our Q1 results were below our expectations due to the
retail inventory overhang coming out of the holiday period,"
Margo Georgiadis, who took over as chief executive in February,
said in a statement. (bit.ly/2o8O6c8)
Mattel' net loss widened to $113.2 million, or 33 cents per
share, in the quarter ended March 31, from $73 million, or 21
cents per share, a year earlier.
Excluding items, it lost 32 cents per share.
The company said sales in its girls and boys brands
division, which houses Barbie, dropped 16 percent. The division
accounted for about 60 percent of total sales.
Barbie sales declined 13 percent, falling for the second
straight quarter. Barbie sales had risen for the first three
quarters of last year, helped by new marketing efforts and the
launch of dolls in a variety of skin tones and body shapes.
Mattel said Fisher-Price sales dropped 9 percent in the
However, Georgiadis said the company had "worked through the
majority of" the inventory overhang and also noted sustained
momentum in high-growth markets such as China.
Mattel has been trying to boost its presence in China's
fragmented yet lucrative toy market.
The company has signed deals with Chinese e-commerce giant
Alibaba Group Holding Ltd and online content developer
BabyTree to sell interactive learning products based on its
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by