Mattel's numbers up in latest quarter
By Staff -- Gifts and Dec, 10/20/2008 9:17:00 AM
EL SEGUNDO, Calif.—Mattel today reported a 6 percent gain in net sales, driven largely by greater sales at home, and an uptick in profitability during the recently completed third quarter.
Net income during the 2008 quarter was $238.1 million, or $0.66 per share, compared to last year’s third quarter net income of $236.8 million, or $0.61 per share. The results were short of analysts’ expectation of a 71 cents per share gain, according to Reuters Estimates.
"In light of the recent global economic environment, our business performed well in the quarter," said Robert A. Eckert, Mattel’s chairman and CEO. "The all-important holiday season, however, is ahead of us, and fortunately, we’ve got some of the industry’s hottest toys that deliver terrific play value for both parent and child."
For the quarter, worldwide net sales rose 6 percent to $1.95 billion, including favorable changes in currency exchange rates of 2 percentage points. On a regional basis, third quarter gross sales increased 4 percent in the U.S. and increased 7 percent in international markets, including favorable changes in currency exchange rates of 6 percentage points. Operating income for the quarter was $315.3 million, compared to prior year’s operating income for the quarter of $310.5 million.
Unit performance
Worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.21 billion, up 6 percent versus a year ago.
Worldwide gross sales for the Barbie brand declined 1 percent compared to last year, with modest domestic growth offset by international declines. Worldwide gross sales for Mattel’s Other Girls Brands were up 26 percent, driven primarily by Disney’s High School Musical dolls.
Worldwide gross sales for the Wheels category, which includes the Hot Wheels, Matchbox and Tyco R/C brands, rose 7 percent.
Worldwide gross sales for Mattel’s Entertainment business, which includes Radica and Games and Puzzles, grew 3 percent for the quarter, mostly attributable to shipments of products tied to the movie properties Batman: The Dark Knight, Speed Racerand Kung Fu Panda.
Third 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 $833.1 million, or up 4 percent versus the prior year, primarily due to growth in Fisher-Price Core, partially offset by declines in Fisher-Price Friends and Power Wheels.
Third quarter gross sales for the American Girl Brands business unit, which offers American Girl branded products directly to consumers, were $78.8 million, up 11 percent versus last year, driven by sales of products tied to the Kit Kittredgemovie, and additional sales in AG's Atlanta and Dallas boutiques, which opened in the second half of 2007.
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