Mattel Q1 Loss Widens - Update

(RTTNews) - Mattel Inc. (MAT) Wednesday reported a first-quarter loss that widened from a year ago, hurt largely by lower sales reflecting weak Barbie doll shipments and a stronger U.S. dollar. The toy maker's loss for the quarter were higher than what Wall Street analysts were expecting.

El Segundo, California-based Mattel's first-quarter loss widened to $73.0 million or $0.21 per share from $58.2 million or $0.17 per share last year.

Adjusted loss for the quarter were $0.13 per share, wider than last year's $0.08 per share. Analysts polled by Thomson Reuters estimated loss of $0.07 per share for the quarter.

Net sales for the quarter dropped 6 percent to $869.4 million from $922.7 million last year. Analysts had a consensus revenue estimate of $861.1 million.

The company's Fisher-Price and Hot Wheels products helped bolster sales. This helped offset a decline at its American Girl unit.

"Our results in the quarter reflect very solid progress, particularly in light of significant headwinds we faced at the outset of 2016," said Christopher Sinclair, Chairman and CEO of Mattel.

Gross margin decreased 410 basis points, driven mainly by the negative impact from changes in currency exchange rates.

North American gross sales fell 2 percent, while international gross sales dropped 11 percent due to strong dollar.

Brand-wise, sales for Mattel Girls & Boys brands declined 13 percent to $527.9 million with Barbie sales down 3 percent. Sales for Fisher-Price brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, rose 3 percent to $272.6 million.

Sales for American Girl brands, which offers American Girl-branded products directly to consumers, slipped 12 percent to $93.3 million. Construction and Arts & Crafts brands, which includes the MEGA BLOKS and RoseArt brands, surged 62 percent to $61.9 million.

MAT closed Wednesday's trading at $33.04, down $0.87 or 2.57%, on the NYSE. The stock further dropped $1.29 or 3.90% in the after-hours trade.