Mattel sees sales drop in Q4; remains “optimistic” about year ahead

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Mattel has reported a net sales drop of 11 per cent for 2017 in its latest results, while Q4 2017 saw net sales down 12 per cent.

Region-wise, net sales in 2017 in North American decreased by 17 per cent, driven by ‘tighter retailer inventory management, certain underperforming brands, and the Toys “R” Us bankruptcy filing’, while in the International region, net sales for the year were flat.

For Q4 2017, net sales in North American region decreased by 17 per cent, and in the International region, net sales decreased by four per cent.

“We have taken aggressive action to enter 2018 with a clean slate so that we can reset our economic model and rapidly improve profitability,” said Margo Georgiadis, CEO of Mattel.

“We are optimistic about stabilising revenue in 2018 anchored by our key power brands, entertainment partnerships and exciting new launches. We continue to gain momentum toward the medium-term goals we shared at our June Investor Day.”

Looking at brands, 2017 saw worldwide gross sales for Mattel Girls & Boys Brands at $3.1 billion, down four per cent, while worldwide gross sales for the Barbie brand were down two. Worldwide gross sales for Other Girls brands were down 36 per cent, driven by declines in Monster High and Ever After High and partially offset by initial sales of Enchantimals.

Elsewhere, 2017 saw worldwide gross sales for the Wheels category down four per cent, driven by declines in Hot Wheels and Matchbox, while worldwide gross sales for the Entertainment business were up 12 per cent thanks to increases in Cars sales, offset by declines in Minecraft and DC Comics products.

For Q4 2017, worldwide gross sales for Mattel Girls & Boys Brands were $1.1 billion, up one per cent, while worldwide gross sales for the Barbie brand were up nine per cent.

Worldwide gross sales for Other Girls brands for the quarter were down 35 per cent and worldwide gross sales for the Wheels category were down seven per cent.

For the year, worldwide gross sales for Fisher-Price Brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, were $1.7 billion, down 11 per cent, while fourth quarter worldwide gross sales were $533.8 million, down 12 per cent.

On the American Girl side of the business, 2017 saw worldwide gross sales down 21 per cent and fourth quarter worldwide gross sales down 23 per cent.

For the year, worldwide gross sales for Construction and Arts & Crafts Brands, which includes the Mega Bloks and RoseArt brands, were down 29 per cent, and Q4 worldwide gross sales for Construction and Arts & Crafts Brands were down 25 per cent.

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