Mattel's sales slip in Q3 - ToyNews

Mattel's sales slip in Q3

Firm reports eight per cent fall in worldwide sales for the third quarter ended September 30th.
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Net sales were $1.79 billion, compared to $1.95 billion last year, including unfavourable changes in currency exchange rates of three percentage points.

Net profit was $229.8 million, or 63 cents per share, compared to £238.1 million or 65 cents per share in Q3 2008.

On a regional basis, US sales decreased two per cent in the US and 14 per cent in international markets, including unfavourable changes in currency exchange rates of five percentage points.

Robert Eckert, chairman and CEO of Mattel commented: "As expected, revenues continue to be challenging this year due to the overall economic environment, retailers tightly managing inventory, foreign exchange rates and the lack of entertainment-inspired toy lines.

"That said, we are continuing to make strong progress on reducing costs, rebuilding margins and generating strong cash flow."

Worldwide sales for the Girls and Boys brands business unit were $1.08 billion, down ten per cent versus a year ago.

Barbie declined eight per cent compared to last year, with gross sales for other girls brands down 19 per cent.

Gross sales for the Wheels category, including Hot Wheels, Matchbox and Tyco R/C were down three per cent.

Gross sales for the Entertainment business, including Radica and games and puzzles declines 15 per cent, mostly attributable to lower sales of Radica and toys related to last year's summer entertainment properties.

Fisher-Price goss sales were $784.8 million, down six per cent on the same period in 2008.

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