Tuesday, September 16th24.1°C
23373
22754

Mattel shares fall on disappointing holiday quarter, weak Barbie sales

EL SEGUNDO, Calif. - Mattel says it was a tough time in toyland this past holiday season.

Shares of Mattel dropped more than 9 per cent in premarket trading Thursday after the world's largest toy maker said sales of key toys like Barbie and Fisher-Price preschool items dropped in its fourth quarter.

CEO Bryan Stockton called 2013 a "challenging and transformative year at retail."

Toy makers count on the November and December holiday season to make 40 per cent or more of annual revenue. But traditional toy makers are struggling as kids turn more toward electronic devices and video games.

While fourth-quarter net income climbed 21 per cent from year-ago results depressed by a litigation charge, Its quarterly performance missed both analysts' estimates and the company's own expectations.

For the three months ended Dec. 31, Mattel Inc. earned $369.2 million, or $1.07 per share. That compares with $306.5 million, or 87 cents per share, a year ago. The prior-year period included an $87.1 million litigation charge.

Analysts surveyed by FactSet expected earnings of $1.19 per share.

Revenue dropped 7 per cent to $2.11 billion from $2.26 billion. Analysts expected $2.37 billion.

Barbie and Fisher-Price sales both declined 13 per cent. Sales for Hot Wheels fell 8 per cent.

One bright spot was American Girl, which reported a 3 per cent sales increase. Mattel said the performance was mostly helped by sales of the 2013 Girl of the Year, Saige.

CEO Stockton said weakness was mostly in the U.S. and the El Segundo, Calif.-based toy maker is continuing to invest in emerging markets like China and Russia.

Mattel's full-year net income increased to $903.9 million, or $2.58 per share, from $776.5 million, or $2.22 per share, in the previous year.

Annual revenue edged up 1 per cent to $6.48 billion from $6.42 billion.

Shares fell $4.11, or 9.6 per cent to $38.90 in premarket trading about an hour ahead of the market open. The stock has fallen 10 per cent so far this year.

The Canadian Press


Read more Business News

22689


Recent Trending




Today's Market
S&P TSX15510.54+27.98
S&P CDNX975.70-5.80
DJIA17131.97100.83
Nasdaq4552.759+33.856
S&P 5001998.98+14.85
CDN Dollar0.9109-0.0006
Gold1236.70-0.20
Oil94.66-0.22
Lumber349.00+1.00
Natural Gas4.045-0.018

 
Okanagan Companies
Pacific Safety0.175-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.01
Cantex0.06-0.01
Anavex Life Sciences0.250.00
Metalex Ventures0.06-0.005
Russel Metals35.95-0.22
Copper Mountain Mining2.69-0.01
Colorado Resources0.16+0.005
ReliaBrand Inc0.027+0.003
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.30+0.035

 



21097

FEATURED Property
16954816843-Santiago Loop
3 bedrooms 2 baths
$279,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...

_





23109


Member of BC Press Council


22962