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.