Mattel is optimistic that its new brands and launches will help drive business for 'this year and many years to come,’ following disappointing financial results for the first quarter of 2014.
The US toy firm has reported a $11.2 million net loss, with worldwide net sales dropping five per cent.
For the first quarter, net sales were $946.2 million, compared to last year’s $995.6 million, with sales in the firm’s flagship brand, Barbie seeing a 14 per cent drop.
However, Hot Wheels saw an increase of two per cent and American Girl five per cent, positive results in a “challenging global market.”
Bryan G Stockton, Mattel chairman and chief executive officer, said: “For the first quarter, revenues were consistent with our expectations as we worked through inventories in a challenging global retail environment.
“In addition, we managed costs and streamlined our workforce as part of our initiatives to drive efficiencies throughout the organisation.”
Stockton explained that the company made significant progress against the firm’s two strategic objectives of entering new categories and strengthening its girls portfolio.
He continued: “We launched Boom Co, our highly anticipated entry into the outdoor category, announced the acquisition of Mega Brands and continued the global launch of our newest doll franchise, Ever After High.
“As we approach the second half of the year, and the all important holiday season, we are optimistic that these initiatives will help drive our business this year and for many years to come.”