Mattel Reports First Quarter 2010 Financial Results

First Quarter Highlights

• Worldwide net sales up 12 percent;
• Domestic gross sales up 12 percent;
• International gross sales up 12 percent;
• Worldwide gross sales for core brands: Barbie® up 5 percent; Hot Wheels® up 9 percent; Core Fisher-Price® up 5 percent and American Girl® brands up 6 percent;
• Operating income of $45.2 million compared to operating loss of $55.2 million in the first quarter of 2009.

Mattel Inc. today reported 2010 first quarter financial results. For the quarter, the company reported net income of $24.8 million, compared to last year's first quarter net loss of $51.0 million.

"I am pleased with the performance across our portfolio of brands, including our core brands and our licensed evergreen brands, especially our newest properties World Wrestling Entertainment, Thomas and Friends, and Toy Story," said Robert A. Eckert, chairman and chief executive officer of Mattel. "I am also pleased with our continued success in identifying and executing programs that are generating efficiencies across the organization."

Financial Overview

For the quarter, net sales were $880.1 million, up 12 percent compared to $785.6 million last year. On a regional basis, first quarter gross sales increased 12 percent in the U.S. and increased 12 percent in international markets. Operating income for the quarter was $45.2 million, compared to prior year's operating loss for the quarter of $55.2 million.

Mattel Girls & Boys Brands
For the first quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $573.1 million, up 14 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 5 percent. Worldwide gross sales for Other Girls Brands were up 21 percent, driven by the Disney PrincessTM doll line. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were up 3 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 35 percent for the quarter, primarily driven by growth in the World Wrestling Entertainment and Toy Story® properties, as well as core games.

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 $316.2 million, or up 11 percent versus the prior year, primarily driven by sales of products supporting the evergreen entertainment property, Thomas and Friends®, added to the portfolio in 2010, and growth in Fisher-Price® Core.

American Girl Brands
First quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products directly to consumers, were $70.2 million, up 6 percent versus last year, primarily driven by strong sales of LanieTM, the 2010 Girl of the Year.