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But total sales fell 8%, dragged down by a drop in demand for toys in China and Europe, announced Thursday the company. Sales fell 18% outside of North America, but posted the strongest growth at home since 2015.
The company reported a profit of $ 6.3 million in the third quarter. In the same quarter of last year, the company recorded a loss of $ 603 million. Mattel's (MAT) shares rose 6% after trading hours.
Mattel and other major toy manufacturers have struggled in recent years, children interest more and more games on smartphones and tablets, as well as other toys from high technology.
Ynon Kreiz, chairman and CEO, said Mattel had made "significant progress" to become more profitable. He said the company was on the right track in a technology-driven sector. Mattel's strategy is to make the most of its "iconic brands" and intellectual property.
In July, Mattel announced the removal of more than 2,200 workers, nearly a quarter of its workforce, and the sale of some of its plants. Kreiz, who took office in April, said Thursday that Mattel "is actively exploring strategic alternatives for our manufacturing footprint."
Mattel was hit hard by the closure of Toys "R" Us in June. The liquidation of the channel has affected Mattel in the last quarter and will continue to hurt the company as the holidays approach. Mattel expects the impact of Toys "R" Us to abate next year.
His rival Hasbro (HAS) said earlier this week that he would fire up to 10% of his staff. The toy maker has not yet revealed the exact number of its 5,400 employees worldwide who will lose their jobs. Just over half of Hasbro's staff work in the United States.
Toy manufacturers are also considering the possibility that the Trump administration will impose tariffs on toys imported from China. It is estimated that 85% of toys sold in the United States are made in China. The Trump administration has threatened new tariffs that should include most imports from China not yet subject to tariffs.
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