Mattel Reports Second Quarter 2009 Financial Results

Mattel - July 2009
 
Highlights:
  • Worldwide net sales down 19 percent;
  • Domestic gross sales down 12 percent;
  • International gross sales down 26 percent;
  • Worldwide gross sales for core brands: Barbie® -15%; Hot Wheels® -10%; Core Fisher-Price® -13% and American Girl® brands flat;
  • Operating income of $32.5 million compared to operating income of $30.6 million in the second quarter of 2008.

For the quarter, the company reported net income of $21.5 million compared to last year's second quarter net income of $11.8 million.

"In light of the challenging global economy, the quarter's results met our expectations, with revenues negatively impacted largely by our lack of toys based on summer entertainment properties as well as foreign exchange rates," said Robert A. Eckert, chairman and chief executive officer of Mattel.

For the quarter, net sales were $898.2 million, down 19 percent compared to $1.11 billion last year. On a regional basis, second quarter gross sales decreased 12 percent in the U.S. and decreased 26 percent in international markets. Operating income for the quarter was $32.5 million, compared to prior year's operating income for the quarter of $30.6 million.

Mattel Girls and Boys Brands
For the second quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $540.6 million, down 25 percent versus a year ago. Worldwide gross sales for the Barbie® brand were down 15 percent, driven primarily by lower international sales. Barbie® retail sales trends continue to be strong. Worldwide gross sales for Other Girls Brands were down 23 percent, driven by declines in the High School Musical™ and Polly Pocket® doll lines. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were down 28 percent, driven primarily by declines in products related to last year's Speed Racer® movie. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were down 32 percent for the quarter, driven by the lack of toys based on summer entertainment properties compared to last year.

Fisher-Price Brands
Second 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 $369.9 million, or down 14 percent versus the prior year, primarily due to declines in Fisher-Price® Core.

American Girl Brands
Second quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products directly to consumers, were $61.0 million, flat versus last year.