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.
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.
