EL SEGUNDO, Calif. (AP) — Mattel shares dropped after the nation’s largest toy maker reported a 15 percent drop in sales for the fiscal first quarter as it dealt with holiday hangover of too many items unsold.
The latest quarterly performance underscores the challenges facing CEO Margo Georgiadis, a former Google executive who came on board two months ago and has been charged with reinvigorating the company. El Segundo, California-based Mattel, wrestling with changes in the toy business, has been working hard to turn around its core Barbie business and other franchises.
Mattel reported a loss of $113.2 million, or 33 cents per share, in its first quarter. Adjusted for one-time costs, the loss came to 32 cents per share. The results did not meet Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 17 cents per share.
The company posted revenue of $735.6 million in the period, which also missed Street forecasts. A year ago, the company had posted revenue of $869.4 million. For this year’s first quarter, five analysts surveyed by Zacks expected $810.2 million.
“Our (first-quarter results) were below our expectations due to the retail inventory overhang coming out of the holiday period, but we remain encouraged by (the) strong performance at retail for our key core brands, including Barbie, Hot Wheels, and Fisher-Price as well as sustained momentum in high-growth markets like China,” Georgiadis said in a statement.
Mattel’s shares fell more than 6 percent, or $1.60, to $23.61 each in after-hours trading. In regular trading, the shares had closed up 10 cents to $25.21. The shares have dropped slightly more than 8 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 5 percent.
Elements of the story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MAT at https://www.zacks.com/ap/MAT
Keywords: Mattel, Earnings Report
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