Mattel Inc. reported first quarter 2018 financial results.
For the first quarter of 2018, net sales, which included a $30 million net sales reversal, were down 4 percent as reported, and down 7 percent in constant currency, versus the prior year’s first quarter. Gross sales were down 2 percent as reported, and down 5 percent in constant currency. Adjusted gross sales were up 2 percent, excluding the $30 million gross sales reversal. Reported operating loss was $276.6 million, and adjusted operating loss was $160.5 million. Reported loss per share was $0.90 and adjusted loss per share was $0.60.
For the first quarter, net sales in the North America segment, which included a $27 million net sales reversal, decreased by 5 percent as reported and in constant currency, versus the prior year’s first quarter. Gross sales in the North America segment decreased by 4 percent as reported and in constant currency, primarily driven by sales reversals resulting from the Toys “R” Us liquidation, partially offset by higher sales of Barbie and Hot Wheels. Adjusted gross sales in the North America segment were up 4 percent, excluding a $27 million gross sales reversal.
In the International segment, net sales increased by 2 percent as reported, and decreased by 5 percent in constant currency; gross sales in the International segment increased 5 percent as reported, and decreased by 3 percent in constant currency, primarily driven by higher sales of Barbie and Hot Wheels.
Net sales for the American Girl segment decreased by 21 percent as reported and in constant currency. Gross sales for the American Girl segment decreased by 22 percent as reported and in constant currency, primarily driven by lower sales across channels.
For the first quarter, worldwide gross sales for Mattel’s power brands were $552.9 million, up 2 percent as reported, and down 1 percent in constant currency, versus the prior year’s first quarter. Worldwide gross sales for the Barbie brand were up 24 percent as reported, and up 18 percent in constant currency, versus the prior year’s first quarter, primarily driven by positive momentum and the successful introduction of new product lines.
Worldwide gross sales for the Hot Wheels brand were up 15 percent as reported, and up 11 percent in constant currency, versus the prior year’s first quarter, primarily driven by higher sales of die cast and tracks and play sets. Worldwide gross sales for the Fisher-Price and Thomas & Friends brands were down 8 percent as reported, and down 12 percent in constant currency, primarily driven by lower sales of Fisher-Price Baby and Thomas & Friends products. Worldwide gross sales for the American Girl brand were down 21 percent as reported, and down 22 percent in constant currency, due to lower sales across channels.
