Mattel, Inc. (NASDAQ:MAT) surprisingly reported net losses for the first quarter of the current fiscal year as the world’s largest manufacturer of toys experienced a significant decline in Barbie sales worldwide and recorded incremental severance expenses.
The stock price of the toy maker is down by 1.24% to $37.40 per share as of this writing around 1:48 PM in New York.
Financial results
According to the financial statement of Mattel, Inc. (NASDAQ:MAT) its net losses for the first quarter were $11.2 million or $0.03 per share. During the same period a year ago, the toy maker delivered $38.5 million net income, or $0.11 earnings per share.
Mattel, Inc. (NASDAQ:MAT) said its SG&A increased 350 basis points of net sales, which included an incremental severance charge of $16 million. Its gross margin declined by 330 basis points of net sales during the quarter.
The toy maker recorded $946.2 million in net sales, a decline of 5% from $995.6 million in the year-ago quarter. Mattel, Inc. (NASDAQ:MAT) said its gross sales in the North American region fell 2% and International region dropped 7%.
The worldwide sales performance of its core brands such as Barbie declined by 14% and Fisher Price slumped 6%. Its Hot Wheels and American Girl brands increased 2% and 5%, respectively.
Consistent with company’s expectations
In a statement, Bryan G. Stockton, Mattel Chairman and Chief Executive Officer said, “For the first quarter, revenues were consistent with our expectations as we worked through inventories in a challenging global retail environment.“
Stockton added that Mattel, Inc. (NASDAQ:MAT) managed its costs and streamlined its workforce as part of its initiative to drive efficiency throughout the company. He added, “Importantly, we made significant progress against two of our strategic objectives, entering new categories and strengthening our Girls Portfolio.”
During the quarter, Mattel, Inc. (NASDAQ:MAT) launched its outdoor category BOOMco and acquired Mega Brands Inc. (TSE:MB). Stockton is optimistic that the latest initiatives of the company will help drive its business this year and more years ahead.
The board of directors of Mattel, Inc. (NASDAQ:MAT) approved a dividend payment of $0.38 per share for the second quarter. Its annualized dividend is $1.52 per share. The company also repurchased 736,000 shares of its common stock for approximately $28 million.
