EL SEGUNDO, California. – Mattel shares fell after the nation’s largest toy maker reported a 15 percent decline in sales for the fiscal first quarter, as it goes with a holiday hangover of too many items to purchase.
The latest quarterly performance underscored the challenges CEO Margo Georgiadis, a former Google executive who came on board two months ago, and is responsible for a new impetus for the company. El Segundo, California-based Mattel, wrestling with changes in the toy company, has worked hard to turn around the core Barbie business and other franchises.
Mattel reported a loss of $113.2 million, or 33 cents per share, in the first quarter. Adjusted for the nonrecurring 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 a revenue of $735.6 million in the period, which also missed Street forecasts. A year ago, the company had posted a revenue of $869.4 million. For this year the first quarter of five analysts surveyed by Zacks expected $810.2 million.
“Our (first quarter) under our expectations because the retail inventory overhang coming out of the holiday period, but we remain encouraged by the strong performance in the retail industry for our core brands, including Barbie, Hot Wheels and Fisher-Price as well as the sustained momentum in fast-growing 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 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 the MAT https://www.zacks.com/ap/MAT
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