Mattel Reports First Quarter 2011 Financial Results

First Quarter Highlights

• Worldwide net sales up 8 percent;
• Domestic gross sales up 7 percent;
• International gross sales up 10 percent;
• Worldwide gross sales for core brands: Barbie® up 14 percent; Hot Wheels® up 6 percent; Core Fisher-Price® flat and American Girl® brands up 4 percent;
• Operating income of $36.8 million compared to operating income of $45.2 million in the first quarter of 2010.

Mattel Inc. today reported 2011 first quarter financial results. For the quarter, the company reported net income of $16.6 million, compared to last year’s first quarter net income of $24.8 million.

“Our diverse portfolio of brands and countries has once again allowed us to deliver on our goal of consistent growth,” said Robert A. Eckert, chairman and chief executive officer of Mattel. “Additionally, we are well positioned to improve operating margin and deliver strong cash flow for the year.”

Financial Overview

For the quarter, net sales were $951.9 million, up 8 percent compared to $880.1 million last year. On a regional basis, first quarter gross sales increased 7 percent in the U.S. and 10 percent in international markets. Operating income for the quarter was $36.8 million, compared to prior year’s operating income for the quarter of $45.2 million.

Sales by Business Unit

Mattel Girls & Boys Brands
For the first quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $656.4 million, up 15 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 14 percent. Worldwide gross sales for Other Girls Brands were up 38 percent, driven by the Monster High® and Disney Princess™ doll lines. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were up 4 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 13 percent for the quarter, primarily driven by growth in the CARS™, Green Lantern® and Toy Story® properties.

Fisher-Price Brands
First quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price® Core, Fisher-Price® Friends and Power Wheels® brands, were $309.9 million, or down 2 percent versus the prior year due primarily to the discontinuation of the Sesame Street product line.

American Girl Brands
First quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products directly to consumers, were $73.0 million, up 4 percent versus last year, primarily driven by strong sales of Kanani™, Girl of the Year 2011.