Mattel Inc. (NASDAQ: MAT) on Wednesday posted first-quarter earnings results that missed analysts’ estimates, as sales of its flagship Barbie doll slipped and lost of a valuable Walt Disney Co. license to rival Hasbro Inc.
The world’s biggest toymaker said that the loss widens to $73 million, or 21 cents a share, up from $58.2 million, or 17 cents a share, a year earlier. Excluding some item, the loss was 13 cents a share in the quarter ended in March, compare with 8 cents per share a year earlier. Analysts had projected the loss would be 7 cents a share on average.
First-quarter overall sales fell 6 percent to $869.4 million, compared with $922.7 million a year earlier. The overall revenue was hurt by strong dollar. Excluding the impact of foreign-exchange rates, the decrease in net sales would have been 2%, El Segundo, California-based Mattel said in a statement Wednesday after the market closed.
"While we continue to manage the ongoing impact of foreign exchange, our performance is in line with expectations," Mattel Chief Executive Christopher Sinclair said in a statement
The poor performance is also blamed for the weak sales of its flagship Barbie. Sales of Mattel’s Barbie doll fell 3% globally in the first quarter. The result is disappointing because the company reported better-than-expected sales of Barbie in the previous quarter. It raised hope of a turnaround for the company as the sales of Barbie rose for the first time in more than two years.
In addition, the company has to figure out how to compensate the loss of the Disney license of ‘Frozen’ fashion and small dolls and Disney Princess. The properties represent more than $400 million annual sales for Mattel. Mattel’s biggest rival Hasbro won those licenses starting this year.
Mattel shares drop 6.67 percent to $30.84 a share at 12:45 p.m. in New York.