For the first quarter, Mattel Inc. reported worldwide net sales up 5 percent in constant currency, as well as reported worldwide net sales down 2 percent, reflecting the impact from changes in currency exchange rates. On a regional basis, first quarter gross sales increased 9 percent in constant currency, and 8 percent as reported in the North American region, which consists of the U.S., Canada, and American Girl. For the International region, gross sales increased 2 percent in constant currency, and decreased 14 percent as reported.
Worldwide gross sales for Mattel Girls & Boys Brands were $605.2 million, up 1 percent in constant currency versus the prior year, while worldwide gross sales for the Barbie brand were down 5 percent in constant currency. For the quarter, retail sales for Barbie were up on a global basis, driven by a strong performance in the U.S., partially offset by a decline in international markets. Worldwide gross sales for Mattel’s Wheels category, which includes the Hot Wheels and Matchbox brands, were up 10 percent in constant currency.
Gross margin decreased 210 basis points of net sales, partially due to the acquisition of Mega Brands. Adjusted operating loss for the quarter was $14.6 million, compared to the prior year’s adjusted operating income of $27.7 million. The reported operating loss was $54.5 million, compared to a reported operating income of $6.2 million in the first quarter of last year.
