Toy maker Mattel, Inc. (MAT) Thursday reported 22 percent fall in third-quarter profit, as sales decreased mainly hurt by 21 percent decline in Barbie sales. Earnings per share, as well as revenues missed analysts' expectations.
Bryan Stockton, chairman and CEO of the company said, "While third quarter results did not meet our expectations, they do reflect progress towards achieving our goal to end the year with improved POS momentum and reduced inventory levels."
For the three-month period ended September 2014, the company posted net income of $331.8 million or $0.97 per share, down from $422.8 million or $1.21 per share in the previous year.
On average, 11 analysts polled by Thomson-Reuters were looking for earnings estimate of $1.04 per share. Analysts' estimates typically exclude one-time items.
The company said its recent-quarter result included a negative impact of $0.05 per share from MEGA Brands integration costs and a tax benefit of $0.04 per share. The prior-year had a tax benefit of $0.05 per share.
Net sales for the quarter declined 8 percent to $2.02 billion from $2.21 billion last year, and came below the $2.18 billion Wall Street expected.
On a regional basis, third-quarter gross sales decreased 7 percent in the North American Region, which consists of the United States, Canada and American Girl, with no impact from changes in currency exchange rates.
For the International Region, gross sales were down 7 percent from last year, including an unfavorable impact of currency exchange rates of 1 percentage point.
Among brands, gross sales for Mattel Girls & Boys Brands fell 11 percent to $1.32 billion. Worldwide gross sales for the Barbie brand were down 21 percent, while gross sales for Other Girls brands edged up 1 percent from last year, mainly due to Disney Princess and Ever After High.
Gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, increased 4 percent from the preceding year. Sales for the Entertainment business, which includes Radica and Games, fell 23 percent.
Third-quarter gross sales for Fisher-Price Brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, were $663.4 million, down 16 percent from the previous year.
Sales for American Girl Brands, which offers American Girl-branded products directly to consumers, saw a decrease of 7 percent to $113.3 million.
Gross sales from Construction and Arts & Crafts Brands, which includes the MEGA BLOKS and RoseArt brands, were $123.4 million. Mattel acquired MEGA Brands Inc. on April 30, 2014.
The board has also declared a quarterly cash dividend of $0.38 per share, to shareholders of record on November 26, 2014, payable on December 12.
MAT closed Wednesday's trading at $30.54, down 0.39 percent.
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