Mattel has outlined its first quarter 2017 financial results, revealing worldwide net and gross sales are down by 15 per cent.
Reported operating loss was $127.0 million and adjusted operating loss was $122.1 million, while reported loss per share was $0.33 and adjusted loss per share was $0.32.
Elsewhere, the toy giant found sales were low in North America and Europe, offset by strong performance in Asia Pacific (net sales and gross sales up 17 per cent, as reported), and continued momentum in Latin America (net sales down by one per cent and gross sales up by four per cent, as reported).
Despite the results proving to be ‘below expectations’, Mattel’s brands including Barbie, Hot Wheels and Fisher-Price are still performing well.
"Our Q1 results were below our expectations due to the retail inventory overhang coming out of the holiday period, but we remain encouraged by strong performance at retail for our key core brands, including Barbie, Hot Wheels and Fisher-Price, as well as sustained momentum in high-growth markets like China," said Margo Georgiadis, CEO of Mattel.
"We are confident we have worked through the majority of this overhang and look forward to a strong launch of Disney’s Cars 3 theatrical release in the second quarter. While we have a lot of work to do to successfully position Mattel for the future, we see a clear runway to improving growth and profitability over time."
Following the results, the board has declared a 2017 second quarter cash dividend of $0.38 per share, which is flat compared to the second quarter of 2016.