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US toy maker Mattel missed Wall Street's third-quarter sales forecast on Thursday, as its international business was affected by lower demand in China and Europe.
FILE PHOTO: Comic Con fans gather at the Mattel stand and participate in the opening night at Comic Con International in San Diego, California, USA, on July 19, 2017. REUTERS / Mike Blake / File Photo THE WEEK WORLDWIDE OF THE COMPANY
REUTERS: US toy maker Mattel missed Wall Street's third-quarter sales forecast on Thursday, as its international business was affected by slumping demand in China and Europe.
Mattel said declining sales of Fisher-Price and Thomas & Friends resulted in an 18% drop in international sales in the three months ended Sept. 30.
Mattel has mismanaged demand in China over supply and has taken steps to better manage inventories at retailers, said managing director Ynon Kreiz in an interview.
Mattel and other toy manufacturers have also been shaken in recent years by the change in consumption of thousands of small online toy sellers, as well as by children increasingly preferring toys based on franchises Hollywood movies and YouTube shows.
Mattel's biggest rival, Hasbro Inc., said earlier this week that changing consumer tastes were partly responsible for the decline in international revenue.
The gross business figure achieved by Mattel in North America, based in El Segundo, California, increased by 5.6%. This is the first increase of at least six quarters and has dispelled some concerns about the effects of the bankruptcy of the retailer Toys' R & # 39; Us' last year.
According to Refinitiv data, four analysts expected on average a drop of nearly 13% in sales in North America.
The rise contrasts with the results of Hasbro, which stated that the liquidation of Toys' R & # 39; It still had a lingering impact on its operations in the United States and Canada.
Mattel also said Thursday that he would consider strategic alternatives for his manufacturing facilities.
Its overall third-quarter revenue fell 8 percent to $ 1.44 billion, lower than the $ 1.49 billion forecast by analysts on average.
Mattel reported a net profit of $ 6.3 million, compared to a loss of $ 603.3 million a year earlier, when the company had higher tax burdens.
Excluding non-recurring items, Mattel posted a loss of 18 cents per share.
(Report by Uday Sampath in Bengaluru, edited by Sai Sachin Ravikumar)
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