Save this content for laterSave this content on your device for later, even while offline Sign in with FacebookSign in with your Facebook account Close

Mattel shares drop after toy maker posts disappointing sales

By: Associated Press
April 20, 2017 Updated: April 20, 2017 at 5:05 pm
0

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

Comment Policy
Register to the Colorado Springs Gazette
Incognito Mode Your browser is in Incognito mode

You vanished!

We welcome you to read all of our stories by signing into your account. If you don't have a subscription, please subscribe today for daily award winning journalism.

Register to the Colorado Springs Gazette
Register to the Colorado Springs Gazette
Subscribe to the Colorado Springs Gazette

It appears that you value local journalism. Thank you.

Subscribe today for unlimited digital access with 50% fewer ads for a faster browsing experience.

Already a Subscriber? LOGIN HERE

Subscribe to the Colorado Springs Gazette

It appears that you value local journalism. Thank you.

Subscribe today for unlimited digital access with 50% fewer ads for a faster browsing experience.

Subscribe to the Colorado Springs Gazette

Some news is free.
Exceptional journalism takes time, effort and your support.

Already a Subscriber? LOGIN HERE

articles remaining
×
Thank you for your interest in local journalism.
Gain unlimited access, 50% fewer ads and a faster browsing experience.