Home / Retail / Mattel shares take hit after disappointing holiday results

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

Check Also

Bargain Max launches arts and crafts competition for kids at home through lockdown

The UK online toy retailer Bargain Max has launched a nation-wide competition to look for …