UPDATE: Mattel Posts Lower Q2 Earnings
Mattel (NASDAQ: MAT) reported a drop in its second-quarter earnings.
Mattel's quarterly profit fell to $28.3 million, or $0.08 per share, versus a year-ago profit of $73.3 million, or $0.21 per share. The latest quarter results included a tax benefit of $0.11 per share and a negative impact of $0.06 per share of MEGA Brands acquisition costs. Excluding these items, the company earned $0.03 per share.
Its net sales dropped 9.1% to $1.06 billion. However, analysts were projecting a profit of $0.18 per share on revenue of $1.19 billion.
Mattel's gross margin shrank to 46.4% from 51.3%. Barbie sales declined 15% y/y, versus a 14% drop in the first quarter.
The company's North American sales dropped 8%, while international sales fell 9%.
Wheels sales slipped 3%, while other girls sales dropped 11%. Sales for Fisher-Price Brands tumbled 17% to $328.8 million in the quarter.
Sales for Mattel Girls & Boys Brands fell 13% to $689.0 million, while sales for American Girl Brands rose 6% to $83.1 million.
Mattel's gross margin fell 490 basis points of net sales.
The company's press release offered the following comment from Bryan G. Stockton, Mattel Chairman and Chief Executive Officer:
“In the second quarter, we made significant progress across a number of initiatives to better position Mattel in the second half of the year and beyond."
Mattel shares gained 0.18% to $39.10 in pre-market trading.
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