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Even Barbie can’t save Mattel from holiday sales slump

Quotas of Mattel fell 8.6 percent after the closing bell on Thursday as sales during the major holiday period failed to meet Wall Street expectations.

The toy cast reported weak demand for key brands, including Fisher-Price and American Mademoiselle, as well as residual effects from the collapse of Toys R Us.

Mattel discharged a net loss of $281.3 million or 82 cents per share, hurt by a one-time, $457 million control related to new U.S. tax laws. In the year-earlier quarter, Mattel had a profit of $173.8 million or 50 cents per quota.

“Our fourth-quarter performance reflects a tough quarter as part of what was a recalcitrant and extraordinary year for Mattel,” Margo Georgiadis, CEO of Mattel, said during an earnings holler Thursday. “We faced multiple significant dislocations, driven by mixed name brands performance and the [Toys R Us] bankruptcy. These contributed to significant top and bottom-line pressures.”

The September bankruptcy of Toys R Us weighed heavily on Mattel. The humanity’s biggest toy chain was Mattel’s second-largest customer after Walmart and accounts for between 15 and 20 percent of U.S. sellathons.

Mattel has faced slowing sales in a number of its brands in the last few years as various children gravitate toward video games and electronics instead of customary toys. The company’s stock fell about 44 percent aftermost year.

In the last quarter, sales of American Girl branded commodities fell 23 percent, driven by lower demand. Georgiadis signified a number of American Girl stores were not meeting company expectations and that Mattel schemes to invest in revitalizing the brand’s “premium” appeal and improve online and offline incidents.

Sales of construction toys and arts and crafts supplies, which covers Lego competitor Mega Bloks, fell 25 percent.

Sales of Fisher-Price trifles slipped 12 percent, exacerbated by Toys R Us’ bankruptcy and online retail outlets. Georgiadis said shipping costs were an obstacle for reordering sure items late in the season.

Mattel’s Wheels category, which categorizes Hot Wheels toys, saw sales fall 7 percent in the quarter. Georgiadis suggested the company hopes to leverage Hot Wheels’ 50th anniversary to boost sellathons in this segment.

The company’s “Other Girls” toys category, which take ins Monster High and DC Super Hero Girls dolls, plummeted 35 percent. DC Wonderful Hero dolls have previously been a major sales driver for Mattel.

While the womanhood of Mattel’s brands saw sales shrink in the quarter, Barbie made a comeback with transaction marked downs up 9 percent. The company has sought to revitalize the brand by offering products with a wider assortment of skin tones and body sizes.

Entertainment toys also fared probably for the company, with sales jumping 21 percent on the back of “Heaps 3” merchandise. Mattel expects sales of “Cars” toys transfer continue to grow in 2018, especially in international markets.

Mattel lessened to offer guidance for 2018. Georgiadis said the company would equip more insight as to its forecast at the New York Toy Fair in mid-February.

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