Mattel, Inc. (NASDAQ: MAT) reported its fourth quarter financial results on Thursday and saw stronger sales across its major brands like Barbie dolls and Hot Wheels. The better-than-expected sales sent its stock price soaring by over 25% on Friday.
For the quarter, Mattel reported earnings per share of USD 4 cents per share on revenue of USD 1.52 Billion. Refinitiv analysts projected earnings loss of USD 16 cents per share on revenue of USD 1.44 Billion.
Mattel’s earnings increased significantly from the year prior of a loss of 82 cents per share. Despite the year-over-year rise, the Company’s revenue still fell 5.4% from the year prior.
The Company said in its earnings release that sales in its North America segment declined by 6% year-over-year. Gross sales in North America also decreased by 10%, primarily impacted by the liquidation of Toys “R” Us.
International sales helped offset North American declines for the quarter. Internationally, Mattel reported net sales increased by 2%, but gross sales decreased by 7%. The gross sales decline was driven by a slowdown in Mattel’s China business as well as the Toys “R” Us liquidation.
Mattel Power Brands gross sales were USD 1.2 Billion for the quarter, decreasing by 6% year-over-year. Sales from Barbie and Hot Wheels offset some of the losses, as the two segments increased by 12% and 9%, respectively. However, sales for Fisher-Price, Thomas & Friends, and American Girl all fell substantially.
Ynon Kreiz, Chairman and Chief Executive Officer of Mattel, said: “Our fourth quarter results demonstrate meaningful progress in executing our strategy and significant improvement over last year. We remain focused on advancing our strategy to restore profitability and regain top-line growth in the short-to-mid-term and are laying the groundwork to capture the full value of our IP in the mid-to-long-term. After three consecutive quarters of solid, disciplined execution, we are well on our way to becoming an IP-driven, high-performing toy company and creating long-term value for our shareholders. Among all the achievements in 2018, I would like to applaud our team for regaining the #1 toy company position globally in a year full of challenges and headwinds. This is a great moment to celebrate, before we go back and continue the hard work of implementing our multi-year turnaround.”