Barbie softens Toys R Us blow
Mattel's revenue dip beats analyst expectations as Barbie experiences best growth period on record
The demise of Toys R Us has hit the quarterly results of Mattel - but not as drastically as predicted.
Revenue slipped just 4 per cent to $708.4m over the most recent quarter, compared with $735.6m it turned over in the same period last year. This was significantly better than the median forecast of $694.4m from analysts surveyed by Thomson Reuters.
The impact of Toys R Us liquidation was softened by a strong showing for Mattel's best-known brand Barbie, which enjoyed double digit growth – it's best on record. Hot Wheels, too, showed promise in the quarter, helping to bring the company's premier brand portfolio including Fisher-Price and Thomas & Friends to a combined 2 per cent increase during a very difficult period.
Mattel CFO Joe Euteneuer said: "Barbie and Hot Wheels are just flying off the shelves." He said the company has been investing time to learn how the company can manufacture more of the best-selling brands.
Ynon Kriez, the firm's newly appointed CEO who officially took the reins from outgoing Margo Georgiadis yesterday, said in a statement : "While Toys R Us will present a near-term challenge, our transformation plan remains our focus, as we work to deliver improved profitability and return Mattel to its leadership position as a high-performing toy company."