Mattel Reports Q1 Financial Results

Mattel LogoMattel Inc. reported first quarter 2017 financial results, showing a worldwide net sales and gross sales were down 15 percent versus Q1 2016.

There were lower sales in North America and Europe, partially offset by strong performance in Asia Pacific (net sales and gross sales up 17 percent as reported), and continued momentum in Latin America (net sales down 1 percent and gross sales up 4 percent as reported).

Reported operating loss was $127.0 million, and adjusted operating loss was $122.1 million. Reported loss per share was $0.33, and adjusted loss per share was $0.32.

“Our Q1 results were below our expectations due to the retail inventory overhang coming out of the holiday period, but we remain encouraged by strong performance at retail for our key core brands, including Barbie, Hot Wheels, and Fisher-Price as well as sustained momentum in high-growth markets like China,” said Margo Georgiadis, CEO of Mattel. “We are confident we have worked through the majority of this overhang and look forward to a strong launch of Disney’s Cars 3 theatrical release in the second quarter. While we have a lot of work to do to successfully position Mattel for the future, we see a clear runway to improving growth and profitability over time.”

For the first quarter, net sales in the North American Region decreased by 23 percent as reported and in constant currency, versus the prior year’s first quarter; gross sales in the North American Region decreased by 24 percent as reported and in constant currency. In the International Region, net sales decreased by 2 percent as reported, and decreased by 1 percent in constant currency; gross sales in the International Region decreased by 2 percent as reported, and were flat in constant currency.

Reported other selling and administrative expenses decreased $18.7 million; adjusted other selling and administrative expenses for the quarter decreased $13.1 million, reflecting continuous cost improvement initiatives and favorable foreign exchange. Reported operating loss for the quarter was $127.0 million, compared to the prior year’s first quarter reported operating loss of $49.1 million. Adjusted operating loss for the quarter was $122.1 million, compared to the prior year’s first quarter adjusted operating loss of $38.6 million.

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About the author

Maddie Michalik

Maddie Michalik

Maddie Michalik was the Editor-in-Chief of The Toy Book from 2020-2022. She was also a Senior Editor at The Toy Insider and The Pop Insider.

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