Mattel decreased in sales and income

Mattel - October 2009


Third Quarter Highlights

  • Worldwide net sales decreased 8 percent;
  • Domestic gross sales decreased 2 percent
  • International gross sales decreased 14 percent;
  • Worldwide gross sales for core brands: Barbie® down 8 percent; Hot Wheels® up 9 percent; Core Fisher-Price® down 4 percent and American Girl® brands up 4 percent;
  • Profit slipped 3.5 percent to $229.8 million

Mattel, Inc. today reported 2009 third quarter financial results. For the quarter, the company reported net income of $229.8 million, compared to last year's third quarter net income of $238.1 million.

"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," said Robert A. Eckert, chairman and chief executive officer of Mattel, Inc. "That said, we are continuing to make strong progress on reducing costs, rebuilding margins and generating strong cash flow."

Financial Overview
For the quarter, net sales were $1.79 billion, down 8 percent compared to $1.95 billion last year. On a regional basis, third quarter gross sales decreased 2 percent in the U.S. and decreased 14 percent in international markets. Operating income for the quarter was $336.5 million, compared to prior year's operating income for the quarter of $315.3 million.

Mattel Girls and Boys Brands
For the third quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.08 billion, down 10 percent versus a year ago. Worldwide gross sales for the Barbie® brand declined 8 percent compared to last year, with essentially flat domestic sales offset by international declines. Worldwide gross sales for Other Girls Brands were down 19 percent, driven primarily by declines in the High School Musical™ and Polly Pocket® toy lines, partially offset by higher sales of Little Mommy® and Disney Princesses in the U.S. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were down 3 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, declined 15 percent for the quarter, mostly attributable to lower sales of Radica® and toys geared to last year's summer entertainment properties, partially offset by worldwide sales of toys supporting Disney/Pixar's Toy Story and Toy Story 2, along with stronger U.S. sales of Disney/Pixar CARS™ related product.

Fisher-Price Brands
Third quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price® Core, Fisher-Price® Friends and Power Wheels® brands, were $784.8 million, or down 6 percent versus the prior year, primarily due to declines in Fisher-Price® Core and Fisher-Price® Friends domestically.

American Girl Brands
Third quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products directly to consumers, were $82.4 million, up 4 percent versus last year, reflecting the benefit of the opening of two new boutique stores in Boston and Minneapolis in November 2008.