Lower sales of Barbie and Hot Wheels products, coupled with the cost of its October acquisition of HIT Entertainment, caused Mattel’s (NASDAQ:MAT) first-quarter profits to dive 53%, the company reported this morning.
According to the Associated Press, Mattel’s net income dropped to $7.8 million, down from $16.6 million last year, the toy maker reported. Earnings came in at 2 cents per share. Excluding the $680 million acquisition of HIT Entertainment, Mattel earnings would have hit 6 cents a share. Still, that’s one cent less than analysts had predicted.
Mattel’s quarterly revenue slid 3%, to $928.4 million from $951.9 million last year. Revenues were hurt by an unfavorable currency exchange rate. Analysts had forecast first-quarter revenues of $986 million. The company also announced a second-quarter dividend of 31 cents per share to be paid on on June 15.
“As is often the case this time of year, we have work to do in certain areas across our portfolio of brands, countries and customers as we prepare to successfully execute the all-important holiday season,” CEO Bryan Stockton said in a statement.
Sales of the company’s iconic Barbie line of dolls and related products fell 6% worldwide, but its other doll brands rose 22%. Hot Wheels and Matchbox products dropped 6%. In Mattel’s Entertainment unit, which includes games, sales fell by 17%.
Fisher Price toy line sales stayed steady $310.2 million during the quarter. Sales of the American Girl line sounded rose by 4%. In early trading on Monday, investors weren’t playing around with Mattel’s shares, slamming the stock some 7.5% lower, to $31.55.
Mattel is currently working to launch a doll based on the lead character from the best selling novels, and box office-busting film, The Hunger Games.