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Barbie maker Mattel's holiday quarter sales miss estimates

Published 01/25/2017, 04:52 PM
Updated 01/25/2017, 05:00 PM
© Reuters. A worker carries Barbie dolls to put them on the shelves at a toy store in Caracas
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(Reuters) - Mattel Inc (O:MAT), the largest U.S. toymaker, reported holiday quarter sales and profit that fell far short of analysts' estimates, hurt by weak demand for its Barbie dolls and Fisher Price toys.

The company's shares were down about 9 percent at $28.67 in aftermarket trading on Wednesday.

Shares of rival Hasbro Inc (O:HAS) were down 4.1 percent at $83.20.

Global sales for Mattel Girls & Boys Brands, which include Barbie and Hot Wheels toys, fell 7 percent in the fourth-quarter ended Dec. 31.

Fisher-Price, which sells products for toddlers, fell 3 percent in the quarter.

"Our results were negatively impacted by a number of industry–wide challenges, including a significant U.S. toy category slowdown in the holiday period," outgoing Chief Executive Christopher Sinclair said in a statement.

The company's net income fell to $173.8 million, or 50 cents per share, in the latest quarter, from $215.2 million, or 63 cents per share, a year earlier.

Excluding certain items, the company earned 52 cents per share. Analysts on average were expecting 71 cents per share.

© Reuters. A worker carries Barbie dolls to put them on the shelves at a toy store in Caracas

Net revenue fell 8.3 percent to $1.84 billion. Analysts on average had expected $1.96 billion, according to Thomson Reuters I/B/E/S.

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