Mattel Profit Tops Street View as Barbie Sales Jump
Mattel’s holiday-quarter profit beat Wall Street estimates, mainly on strong demand for the top toy company’s Fashionista Barbie dolls and Hot Wheels cars.
The company, which recently gave its 50-year-old iconic product Barbie a facelift, also benefited from tighter cost controls and a weak U.S. dollar.
Fourth-quarter net income rose to $328.4 million, or 89 cents a share, from $176.4 million, or 49 cents a share, a year earlier.
Excluding a tax benefit, the profit was 81 cents a share, beating the analysts’ average forecast of 68 cents, according to Thomson Reuters.
Net sales rose 1 percent to $1.96 billion, including a benefit of 4 percentage points from changes in currency exchange rates. Analysts had expected sales of $1.98 billion.
El Segundo, California-based Mattel [MAT 20.04 — UNCH (0) ] saw gross sales fall 2 percent in its domestic markets and rise 3 percent internationally. It is expanding its presence in emerging markets like China and India to offset weakness at its home turf.
The company, whose rivals include Hasbro [HAS 31.54 — UNCH (0) ] and Hello Kitty creator Sanrio of Japan, pointed out weakness at its Fisher-Price and American Girl brands.