Mattel released the earnings results from its first fiscal quarter after closing bell tonight, posting adjusted losses of 8 cents per share on $922.7 million in revenue. Analysts had been expecting the toy maker to report losses of 8 cents per share on $896.44 million in sales.
In the same quarter a year ago, Mattel reported adjusted earnings of 3 cents per share. Reported losses per share were 17 cents, compared to last year’s reported losses of 3 cents per share.
Key metrics from Mattel’s earnings report
Mattel said a 5% increase in constant currency and a 2% decline in reported worldwide net sales. The toy maker said gross sales in North America grew 9% in constant currency, while international gross sales rose 2% in constant currency. The company’s adjusted operating losses were $14.6 million, compared to last year’s $27.7 million in adjusted operating losses.
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Mattel Chairman and Chief Executive Christopher Sinclair expressed confidence in their turnaround progress in a statement: “In the first quarter, we took a number of steps to implement a rapid turnaround at Mattel. We are already benefitting from better decision-making, alignment and enhanced accountability,” he said,
“And we’ve begun to refocus our culture on creativity, innovation and improving our speed to market,” He added. While we still have a lot of work to do, we’re starting to see progress with our core brands like Barbie and Fisher-Price, and I am confident we are making the changes necessary to perform better in the future.”
Mattel’s earnings by segment
Sales in the toy maker’s Girls and Boys Brands segment increased 1% in constant currency year over year to $605.2 million. Barbie brand gross sales fell 5% worldwide, but retail sales increased globally due to strong U.S. performance. Mattel’s Wheels category saw a 10% increase.
Fisher-Price brands saw a 3% increase in worldwide gross sales to $264 million, while American Girl Brands sales were flat year over year at $106.1 million. Mattel’s Construction and Arts and Crafts brands saw gross sales of $38.3 million for the first quarter.
Mattel’s board of directors declared a dividend of 38 cents per share, which is flat with last year’s second quarter dividend.