Mattel Q1 profit slips, but beats estimates

Sales up eight per cent, while profit drops 33 per cent for the period.
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Mattel today reported a net profit of $16.6 million, a drop of 33 per cent compared to last year’s first quarter net income of $24.8 million.

The net sales for the period were $951.9 million, up eight per cent compared to $880.1 million last year.

On a regional basis, first quarter gross sales increased seven per cent in the US and ten per cent in international markets.

Overall the firm earned five cents per share in the quarter, compared to analysts expectations of four cents per share.

Bob Eckert, chairman and chief executive officer of Mattel, commented: “Our diverse portfolio of brands and countries has once again allowed us to deliver on our goal of consistent growth.

“Additionally, we are well positioned to improve operating margin and deliver strong cash flow for the year.”

Worldwide gross sales for the Mattel Girls & Boys Brands business unit were $656.4 million, up 15 per cent versus a year ago.

Worldwide gross sales for the Barbie brand were up 14 per cent and for other girls brands were up 38 per cent, driven by the Monster High and Disney Princess doll lines. Worldwide gross sales for the wheels category, which includes the Hot Wheels, Matchbox and Tyco R/C brands, were up four per cent.

Worldwide gross sales for the entertainment business, which includes Radica and Games and Puzzles, were up 13 per cent for the quarter, primarily driven by growth in the Cars, Green Lantern and Toy Story properties.

Q1 worldwide gross sales for the Fisher-Price Brands were $309.9 million, or down two per cent compared with the prior year due primarily to the discontinuation of the Sesame Street product line.

Finally, first quarter gross sales for the American Girl Brands business unit, which offers American Girl branded products directly to consumers, were $73 million, up four per cent versus last year, primarily driven by strong sales of Kanani, Girl of the Year 2011.

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