Mattel misses quarterly sales, announces job cuts

Mattel Inc.'s quarterly sales missed badysts' estimates Wednesday, plagued by the liquidation of key customer Toys "R" Us and the lack of a big film related to the quarter, resulting in a decline of its 7.6% shares The company also announced that it would cut 2,200 jobs, or 22% of its global non-manufacturing workforce, and that it planned to sell factories in Mexico as part of a $ 650 million savings program.

Mattel had approximately 28,000 employees as of December 31, 2017.

The company's net sales dropped 13.7% to 840.7 million dollars in the second quarter ended June 30. According to Thomson Reuters I / B / E / S, badysts expected $ 851.8 million

. The company's brand-name business turnover, which includes sales of franchisee toys, dropped by 23% during the quarter. "We had a very big quarter last year because of Mattel's new general manager, Ynon Kreiz, told Reuters:

The company, like the rest of the US toy industry , was hit hard by the liquidation of retailer Toys' R & Us and said that the closure of its biggest customer has dropped its gross sales by 10 percent in the second quarter.

"We We had a tough second quarter caused mainly by the liquidation of Toys "R" Us, "Kreiz said in a statement. 19659002] Kreiz, however, was optimistic that the company could recoup lost sales from the deceased retailer , saying that he was in "deep conversations" with other retailers to fill the void left behind by Toys "R" Us.

Earlier in the week, his rival Hasbro Inc has reported quarterly earnings and profits meill urs than predicted, sales of toys based on the success of great movies, Avengers: Infinity War and Black Panther have helped reduce Toys' losses in R & # 39; Us