Mattel Results Top Estimates

(RTTNews) - Toy maker Mattel, Inc. (MAT) said Thursday after the markets closed that its first quarter loss widened from last year, as sales declined due to the impact of a stronger U.S. dollar while costs and expenses rose.

However, the company's adjusted loss per share was narrower than analysts' estimate and its quarterly sales came in above analysts' expectations.

"In the first quarter, we took a number of steps to implement a rapid turnaround at Mattel," said Christopher Sinclair, Mattel Chairman and CEO. "We are already benefitting from better decision-making, alignment and enhanced accountability. And we've begun to refocus our culture on creativity, innovation and improving our speed to market. While we still have a lot of work to do, we're starting to see progress with our core brands like Barbie and Fisher-Price, and I am confident we are making the changes necessary to perform better in the future."

Mattel shares are currently gaining 6.65% in after hours trading after closing the day's regular trading session at $25.27, down 10 cents. The shares trade in a 52-week range of $22.32 to $40.00.

Sinclair took over as the permanent CEO of the company earlier this month. In January, he was named interim CEO and chairman of Mattel after the exit of Bryan Stockton. Sinclair is faced with the task of reviving growth at Mattel, which is trying to turn around the fortune of its iconic Barbie doll that has witnessed weak sales in recent time.

In February, Mattel unveiled an Internet-connected Barbie doll that can have real conversations with kids. The doll, dubbed "Hello Barbie", is being developed in partnership with San Francisco startup ToyTalk. 'Hello Barbie' is expected to hit the markets by the holiday season this year, and will be priced $74.99.

For the first quarter ended March 31, 2015, the El Segundo, California-based company reported a net loss of $58.2 million or $0.17 per share, compared to a net loss of $11.2 million or $0.03 per share for the year-ago quarter.

Excluding items, adjusted loss per share for the first quarter was $0.08, compared to adjusted earnings per share of $0.03 in the prior year quarter.

On average, 9 analysts polled by Thomson Reuters expected the company to report a loss of $0.09 per share for the first quarter. Analysts' estimates typically exclude special items.

Net sales for the first quarter fell 2% to $922.7 million from $946.2 million in the same quarter last year. Ten analysts had a consensus revenue estimate of $896.54 million for the first quarter.

North American gross sales rose 8% to $598.1 million, while International gross sales fell 14% to $422.1 million.

Brandwise, first quarter gross sales for Mattel Girls & Boys brands declined 9% to $605.2 million with Barbie gross sales down 14%.

Gross sales for Fisher-Price brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, declined 3 percent to $264.0 million in the first quarter.

First quarter gross sales for American Girl brands, which offers American Girl-branded products directly to consumers, grew to $106.1 million from $105.9 million a year ago.

Gross sales for Construction and Arts & Crafts brands, which includes the MEGA BLOKS and RoseArt brands, were $38.3 million for the quarter.