Mattel shares take hit after disappointing holiday results

Mattel’s shares have seen an 8.6 per cent decline in the aftermath of a disappointing holiday season.

Key brands such as Fisher-Price and American Girl underperformed, while the firm was feeling negative effects from the collapse of Toys R Us.

Mattel reported a net loss of $281.3 million or 82 cents per share and took a further hit due to charges involved with the new US tax laws. In the year-earlier quarter, Mattel had a profit of $173.8 million or 50 cents per share.

"Our fourth-quarter performance reflects a tough quarter as part of what was a difficult and extraordinary year for Mattel," Margo Georgiadis, CEO of Mattel, said during an earnings call Thursday. "We faced multiple significant dislocations, driven by mixed brands performance and the [Toys R Us] bankruptcy. These contributed to significant top and bottom-line pressures."

This disappointing result is nothing new for Mattel, who experienced a 44 per cent stock drop last year as more youngsters gravitate towards video games and electronics.

About Robert Hutchins

Robert Hutchins is the editor of ToyNews and its sister title, Licensing.biz. He has worked his way from Staff Writer to Editor across the two titles, having spent almost eight years with both and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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