Mattel, Inc. 3Q Earnings Disappoint as Barbie Loses Popularity

Mattel, Inc. 3Q Earnings Disappoint as Barbie Loses Popularity

Mattel, Inc. (NASDAQ:MAT), the world’s largest toy manufacturer reported disappointing financial results for the third quarter as its core brands particular Barbie loses popularity.

The stock price of Mattel, Inc. (NASDAQ:MAT) dropped almost 2% to $30.03 per share at the time of this writing around 11:46 A.M. in New York.

Odey’s Brook Fund Posted A Commanding Q3 Return On Long And Short Sides [EXCLUSIVE]

Eurekahedge Hedge Fund Index invest Value InvestingOdey's Brook Absolute Return Fund was up 10.25% for the third quarter, smashing the MSCI World's total return of 2.47% in sterling. In his third-quarter letter to investors, which was reviewed by ValueWalk, James Hanbury said the quarter's macro environment was not ideal for Brook Asset Management. Despite that, they saw positive contributions and alpha Read More

Financial results

For the third quarter, Mattel, Inc. (NASDAQ:MAT) reported earnings of $331.8 million or $0.97 per share compared with $422.8 million or $1.21 per share in the share period a year ago.

According to the company, its current earnings include $0.05 per share negative impact from MEGA Brands Inc (TSE:MB) integration costs and a tax benefit of $0.04 per share. The world’s largest toy maker acquired MEGA brands earlier this year for approximately $460 million.

Mattel, Inc. (NASDAQ:MAT) said its worldwide net sales declined from $2.21 billion to $2.02 billion during the quarter.

Wall Street analysts expected the toy maker to deliver earnings of $1.02 per share and $2.18 billion in sales based on data compiled by Fact Set.

In a statement, Bryan G. Stockton, chairman and CEO of Mattel, Inc. (NASDAQ:MAT) said, “While third quarter results did not meet our expectations, they do reflect progress towards achieving our goal to end the year with improved POS momentum and reduced inventory levels.”

“Clearly we have work to do as we enter the fourth quarter, and we remain focused on executing during the all-important holiday season and beyond,” added Stockton.

During the quarter, the sales for Barbie declined 21%, Fisher-Price down 16%, American Girl fell 7% while Hot Wheels climbed 5%. Stockton believed that “Barbie is not out of the woods yet” despite the continued decline of its sales performance.

Mattel, Inc. (NASDAQ:MAT) said its gross margin declined 330 basis points of net sales partly due to the acquisition of MEGA Brands Inc (TSE:MB). Its SG&A went up 80 basis points of net sales. Its operating income went down from $528.2 million to $409.5 million.

Mattel declared cash dividend

The board of directors of Mattel, Inc. (NASDAQ:MAT) declared a cash dividend of $0.38 per share for the fourth quarter. The dividend will be payable on December 12 to stockholders of record on November 26. Its annualized dividend increased 6% to $1.52 per share.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Selling The Shale Boom [CHART]
Next article Amazon Set To Hire 80K Seasonal Workers For The Holidays

No posts to display