Mattel Reports Second Quarter 2010 Financial Results

Second Quarter Highlights

• Worldwide net sales up 13 percent;
• Domestic gross sales up 17 percent and international gross sales up 9 percent;
• Worldwide gross sales for core brands: Barbie® up 6 percent; Hot Wheels® up 11 percent; Core Fisher-Price® flat and American Girl® brands down 4 percent;
• Operating income of $69.4 million.

Mattel Inc. today reported 2010 second quarter financial results. For the quarter, the company reported net income of $51.6 million compared to last year's second quarter net income of $21.5 million.

"I am pleased with the continued solid performance across our portfolio of brands and countries, particularly Barbie and Hot Wheels, as well as the stellar contribution of the much-anticipated Toy Story 3 property," said Robert A. Eckert, chairman and chief executive officer of Mattel. "With the all important second-half of the year ahead of us, I am encouraged by the strong momentum of our product line, which boasts some of the industry's most innovative and exciting toys that deliver terrific play value for both parent and child."

Financial Overview

For the quarter, net sales were $1.02 billion, up 13 percent compared to $898.2 million last year. On a regional basis, second quarter gross sales increased 17 percent in the U.S. and increased 9 percent in international markets. Operating income for the quarter was $69.4 million, compared to prior year's operating income for the quarter of $32.5 million.

Mattel Girls & Boys Brands
For the second quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $653.2 million, up 21 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 6 percent. Worldwide gross sales for Other Girls Brands were up 3 percent, driven by the Disney Princess™ doll line. Worldwide gross sales for the Wheels business, which includes the Hot Wheels®, Matchbox® and Tyco R/C® brands, were up 5 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 60 percent for the quarter, primarily driven by growth in the Toy Story® 3 and World Wrestling Entertainment properties, as well as core games.

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 $385.2 million, or up 4 percent versus the prior year, primarily driven by sales of products supporting evergreen entertainment properties, such as Thomas and Friends® and Dora the Explorer®, as well as solid performance 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 $58.9 million, down 4 percent versus last year, reflecting this year's slightly earlier Easter and last year's debut of historical character Rebecca™. The declines were partially offset by sales of products related to Lanie™, the 2010 Girl of the Year®.