Mattel reports profit dip despite glow from 'Barbie' blockbuster
Source: AFP
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Mattel reported a drop in profits Wednesday on lower sales, including a decline in Barbie products in the second quarter.
Profits fell 59 percent to $27.2 million, on a 12 percent fall in revenues to $1.1 billion.
Business was negatively hit by retailers trimming inventory levels and "some overall industry softness," said Chief Financial Officer Anthony DiSilvestro.
"At this point, we believe the retail inventory correction is mostly behind us, and we look forward to meeting consumer demand for our product as we enter the second half of the year and all-important holiday season," DiSilvestro said.
Mattel's toy categories were mixed, with "Hot Wheels" and the overall vehicles category scoring increased gross billings compared with last year, while Fisher Price and the action figures/building sets/games categories fell.
Barbie had a six percent drop in worldwide gross billings to $282.7 million.
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But the iconic doll is expected to be a cash-cow for Mattel in the coming period after the star-studded "Barbie" movie raked in a stunning $155 million in its opening weekend in North America.
"The Barbie movie is a showcase for the cultural resonance of our IP (intellectual property), our ability to attract and collaborate with top creative talent and the capabilities of our franchise management organization," said Mattel Chief Executive Ynon Kreiz.
"This also speaks to the potential of Mattel Films and the significant progress of our strategy to capture the full value of our IP."
Shares of Mattel edged up 0.1 percent, to $21.34, in after-hours trading.
Source: AFP
