Mattel reports smaller loss on higher 'Barbie,' 'Toy Story 4' sales
New York (AFP) –
Mattel on Thursday reported a smaller loss in the second quarter, following sales growth in key franchises including Barbie, Hot Wheels and Toy Story 4.
The toymaker reported a loss of $108 million, compared with a $240.9 million loss in the year-ago period.
Revenues rose two percent to $860.1 million.
Sales were boosted by action figures and games linked to Toy Story 4, offsetting a 22 percent decline in sales in the slumping American Girl division that is being revamped.
Sales also fell in infant, toddler and preschool toys due to weakness in Thomas & Friends and in Fisher-Price, where results have been dented by a recall of an infant sleeper linked to more than 30 fatalities.
Mattel estimated a $30.4 million negative impact on the recall of the Play Sleeper through midyear.
Mattel's chief executive, Ynon Kreiz, said Mattel is making progress on a "multi-year turnaround strategy" consisting of lower administrative and manufacturing costs, as well the launching of film department that is making a new "Barbie" movie with actress Margot Robbie.
"We continue to execute toward our goal to restore profitability and regain topline growth in the short-to-mid-term, and to capture the full value of our IP in the mid-to-long term," said Chief Financial Officer Joseph Euteneuer.
Shares rose 3.9 percent to $13.00 in after-hours trading.
© 2019 AFP