For the second quarter, Mattel Inc. reported flat worldwide net sales in constant currency, and worldwide net sales down 7 percent, reflecting the impact from changes in currency exchange rates.
Adjusted operating income was $23 million, compared to adjusted operating income of $38.1 million in the second quarter of last year, and reported operating income of $.6 million compared to reported operating income of $1 million in the second quarter of last year. Adjusted earnings per share was $0.01, compared to prior year adjusted earnings per share of $.05, and reported loss per share of $.03 compared to prior year reported earnings per share of $.08.
In the North American region, which consists of the U.S., Canada, and American Girl, second quarter gross sales decreased 2 percent in constant currency, and 3 percent as reported. In the International region, gross sales increased by 5 percent in constant currency, and decreased 10 percent as reported.
Adjusted gross margin increased 70 basis points as adjusted and 150 basis points as reported. Adjusted other selling and administrative expenses increased 70 basis points of net sales, and 30 basis points as reported.
Worldwide gross sales were up 1 percent in constant currency, and reported worldwide gross sales were down 6 percent, reflecting the impact from changes in currency exchange rates.
For sales by brand, worldwide gross sales for Mattel Girls & Boys Brands during the second quarter were $601.8 million, down 3 percent in constant currency versus the prior year. Worldwide gross sales for the Barbie brand were down 11 percent in constant currency. Consistent with the first quarter, year-to-date retail sales for Barbie are up slightly on a global basis, driven by strong performance in the U.S. and partially offset by a decline in international markets. Worldwide gross sales for Other Girls brands were down 6 percent in constant currency.
Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were up 26 percent in constant currency, while worldwide gross sales for Mattel’s Entertainment category, which includes Radica and Games, were down 16 percent in constant currency.
