Toy Mattel Inc. (MAT) Thursday reported 22 percent fall in third-quarter profit, as sales decreased mainly hurt by 21 percent decline in Barbie sales.
Net income in the three months ended Sept. 30 fell 22 percent to $331.8 million, or 97 cents a share, from $422.8 million, or $1.21, the El Segundo, California-based company said today in a statement. Analysts predicted $1.02 a share, on average, according to 12 estimates compiled by Bloomberg.
Revenue declined for a fourth-straight quarter amid sluggish toy sales in several major territories as kids spend more time playing on electronic devices. That includes the U.S., Mattel’s largest market. Some of the company’s largest brands, including its Barbie doll line, have also been losing share.
Mattel fell 0.4 percent to $30.54 yesterday in New York. The shares had declined 36 percent this year through yesterday, compared to an 0.8 percent advance for the Standard & Poor’s 500 Index. (SPX)
Revenue declined 8.6 percent to $2.02 billion. Analysts had forecast $2.17 billion.
The company’s profitability also continued to deteriorate. Gross margin, or the percentage of sales remaining after costs of goods sold, narrowed to 50.5 percent from 53.8 percent. That marked a third-straight quarterly decline.
Agencies/Canadajournal
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