Worldwide sales down 2 per cent while profits decline due to Hit acquisition.
Although Mattel's North American sales were down nine per cent, its international division saw a rise of seven per cent. Overall net sales dipped 2 per cent to $928.4 million.
Costs associated with the purchase and integration of Hit Entertainment had an impact on profit - in the three months ending March 31st net income was $7.8 million versus $16.6 million in the same period in 2011, representing a drop of 53 per cent.
Mattel CEO Bryan Stockton said the first quarter had played out as anticipated. He commented: “We consider the first quarter to be spring training for the toy industry. We continue to have momentum in many key areas and we’re focused on improving our performance in a couple of areas like North America and Fisher-Price.
"We gained overall NPD toy category share across the US and in Europe, with Barbie and Hot Wheels gaining share in both regions and we continue to experience strong growth internationally and with American Girl.
"That said, as is often the case this time of year, we have work to do in certain areas across our portfolio of brands, countries and customers as we prepare to successfully execute the all-important holiday season."