From NY Post: Barbie still isn’t pulling her weight at Mattel. Shares of the toymaking giant dropped nearly 10 percent in early Friday trades after it posted disappointing quarterly sales and profits, partly blaming weak demand for its iconic Barbie dolls.
Barbie sales tumbled 5 percent during the quarter, marking Barbie’s third consecutive decline despite last year’s launch of three new Barbie body types — petite, tall and curvy — which briefly goosed sales. Barbie is also increasingly available in a range of skin colors in a bid to make Barbie more attractive to kids worldwide.
Mattel blamed shriveling licensing fees for the drop, while also reporting weak demand for its American Girl, Monster High, Mega Bloks and Thomas & Friends toys in North America. Fisher-Price sales dropped 3 percent. That weighed down Mattel’s results, as well as disappointing demand for toys based on the new “Cars 3” movie.
Shares of Mattel fell about 9.2 percent to $19.35 in early Friday trades.
The Cars movie franchise has been profitable for the toymaker since the series launched in 2006. But U.S. demand for “Cars 3” toys has been soft, Mattel said in a post-earnings call.
“Barbie sales excluding the lapping of a license revenue event in the previous year would have been up about 5 percent, but were not enough to offset more aggressive declines in Monster High and Ever After High,” Jefferies analyst Stephanie Wissink wrote in a client note.
Net sales rose about 2 percent to $974.5 million, but missed analysts’ estimate of $979.7 million, according to Thomson Reuters I/B/E/S.Sales in the company’s Asia Pacific region, of which China is a major part, rose 16 percent to $122.2 million in the latest quarter.
Mattel is renewing its focus on emerging markets such as China where it has tied up with Alibaba Group and Chinese parenting website Baby Tree to set up educational development and learning centers for children.
Excluding certain items, the company lost 14 cents per share, missing analysts’ average estimate of a loss of 9 cents per share.