The FINANCIAL — Mattel, Inc. said on July 16 after the markets closed that it swung to a second quarter loss, as sales declined 7% due to the impact of a stronger U.S. dollar, according to Nasdaq.
However, the toy maker posted a surprise profit on an adjusted basis, but its quarterly sales missed analysts’ forecast.
“In the second quarter, we made solid progress as we work to return Mattel to improved growth and profitability,” said Christopher Sinclair, Mattel Chairman and CEO. “Our financial results in the quarter largely met our expectations, and we are encouraged by improved performance across our core brands, as well as strong momentum in emerging markets like China and Russia. Although we are still early in our turnaround effort, I believe we are taking all the right steps to be more competitive in the growing global toy industry.”
Mattel shares are currently gaining 0.80% in after hours trading after closing the day’s regular trading session at $25.15, down 44 cents or 1.72%. The shares trade in a 52-week range of $22.32 to $37.20.
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.
For the second quarter ended June 30, 2015, the El Segundo, California-based company reported a net loss of $11.4 million or $0.03 per share, compared to net income of $28.3 million or $0.08 per share for the year-ago quarter.
Excluding items, adjusted profit for the second quarter was $0.01 per share, compared to $0.05 per share in the prior year quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to report a loss of $0.04 per share for the second quarter. Analysts’ estimates typically exclude special items.
Net sales for the second quarter fell 7% to $988.2 million from $1.06 billion in the same quarter last year. Ten analysts had a consensus revenue estimate of $995.36 million for the second quarter.
North American gross sales fell 3% to $583.6 million, while International gross sales dropped 10% to $511.5 million.
Brandwise, second quarter gross sales for Mattel Girls & Boys brands declined 13% to $601.8 million with Barbie gross sales down 19%.
Gross sales for Fisher-Price brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, declined 2% to $336.8 million in the second quarter.
Second quarter gross sales for American Girl brands, which offers American Girl-branded products directly to consumers, grew 1% to $84.2 million.
Gross sales for Construction and Arts & Crafts brands, which includes the MEGA BLOKS and RoseArt brands, were $64.8 million for the quarter, up from $61.6 million last year.
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