Mattel Posts Quarterly Loss

EL SEGUNDO: Mattel has reported that worldwide gross sales were down 1 percent in the first quarter, as the Barbie brand hits a slump.

Worldwide net sales were down 2 percent and there was an adjusted operating loss of $36 million. This is a 146 percent gap from a year ago, when the company reported an adjusted operating loss of $14.6 million.

For the first quarter, worldwide gross sales for girls and boys brands were $527.9 million, down 8 percent in constant currency versus the prior year. Worldwide gross sales for the Barbie brand were flat in constant currency. Worldwide gross sales for other girls brands were down 58 percent in constant currency. Worldwide gross sales for the wheels category, which includes Hot Wheels and Matchbox, were up 9 percent. Within the entertainment business, including Radica and games, worldwide gross sales were up 36 percent. Fisher-Price brands saw worldwide gross sales of $272.6 million, up 9 percent. Q1 gross sales for American Girls brands were down 11 percent to $93.3 million.

“Our results in the quarter reflect very solid progress, particularly in light of significant headwinds we faced at the outset of 2016,” said Christopher Sinclair, chairman and CEO of Mattel. “Retail sales continued to show strength across many of our core brands, and are closely aligned with shipping. We saw sustained growth in key emerging markets, where we continue to make strategic investments. And we drove ongoing cost improvement throughout the quarter, while maintaining the dividend. While we continue to manage the ongoing impact of foreign exchange, our performance is in line with our expectations, and we remain on track to deliver on our outlook for the year.”