The FINANCIAL — Mattel Inc. on October 15 reported a 33 percent drop in profit for the third quarter, hurt largely by lower sales reflecting weak Barbie doll shipments and a stronger U.S. dollar. The toy maker’s earnings for the quarter missed Wall Street estimates, as did revenues, according to Nasdaq.
“Our results for the quarter, excluding the significant impact from currency exchange rates, were broadly in line with our expectations at this stage of our turnaround,” said CEO Christopher Sinclair.
Sinclair, who took over as the permanent CEO of the company in April, is faced with the task of reviving growth at Mattel, which is trying to turn around the fortune of its iconic Barbie doll that has witnessed weak sales in recent time.
Sinclair added that the company remains “comfortable” with its full-year outlook.
El Segundo, California-based Mattel’s third-quarter profit dropped to $223.8 million or $0.66 per share from $331.8 million or $0.97 per share last year.
Adjusted earnings dropped to $0.71 per share from $0.98 per share last year. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.80 per share for the quarter. Analysts’ estimates typically exclude special items.
Mattel’s third-quarter sales dropped 11 percent to $1.79 billion from $2.02 billion last year. Analysts had a consensus revenue estimate of $1.89 billion for the quarter.
North American gross sales fell 5 percent, while international gross sales dropped 19 percent due to strong dollar.
Brand-wise, sales for Mattel Girls & Boys brands declined 15 percent to $1.12 billion with Barbie sales down 4 percent in constant currency. Sales for Fisher-Price brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, declined 1 percent to $625.3 million.
Third- quarter sales for American Girl brands, which offers American Girl-branded products directly to consumers, slipped 3 percent to $109.9 million. Construction and Arts & Crafts brands, which includes the MEGA BLOKS and RoseArt brands, dropped to $118.5 million from $123.4 million last year.
MAT closed Thursday’s trading at $22.53, up $0.01 or 0.04% in the Nasdaq. The stock, however, dropped $0.55 or 2.44% in the after-hours trade.