UPDATE: Mattel Q3 Profit Misses Street View

Mattel

posted weaker-than-expected results for the third quarter. The El Segundo, California-based company posted quarterly earnings of $331.8 million, or $0.97 per share, versus $422.8 million, or $1.21 per share, in the year-ago period. The latest quarter included a negative impact of $0.05 per share from MEGA Brands integration costs and a tax benefit of $0.04 per share. The year-ago period included a tax benefit of $0.05 per share. Its sales declined to $2.021 billion from $2.207 billion. However, analysts were expecting earnings of $1.02 per share on sales of $2.176 billion. Gross sales of Barbie doll dropped 21% worldwide, while worldwide gross sales for Mattel Girls & Boys Brands dropped 11% y/y. Sales for American Girl brands dropped 7%, while Hot Wheels sales gained 5%. Sales for Fisher-Price brand dropped 16%. Cash flows used for operating activities were around $144 million, versus around $321 million in 2013. Mattel's board declared a fourth quarter cash dividend of $0.38 per share. “While third quarter results did not meet our expectations, they do reflect progress towards achieving our goal to end the year with improved POS momentum and reduced inventory levels,” said Bryan G. Stockton, Chairman and CEO of Mattel. “Global POS was positive in the quarter, and inventories at retail, both in the U.S. and in international markets, were lower. Clearly we have work to do as we enter the fourth quarter, and we remain focused on executing during the all-important holiday season and beyond.” Mattel shares fell 0.39% to close at $30.54 yesterday.