DOW JONES NEWSWIRES
Mattel Inc. (MAT) swung to a surprise first-quarter profit on
strong sales across the board, helping to boost margins.
After struggling with dwindling sales of its famous toys, the
maker of Barbies and Hot Wheels has seen stronger demand for its
iconic doll recently. Mattel has also improved its lineup of toys
based on popular movies and television shows.
Analysts said Mattel's year-end inventories were in good shape,
which could bode well for retailer restocking trends in the first
half of the year.
"I am pleased with the performance across our portfolio of
brands, including our core brands and our licensed evergreen
brands, especially our newest properties--World Wrestling
Entertainment, Thomas and Friends, and Toy Story," Chairman and
Chief Executive Robert Eckert said Friday.
The largest U.S. toy maker reported a profit of $24.8 million,
or 7 cents a share, compared with a prior-year loss of $51 million,
or 14 cents a share. Revenue increased 12% to $880.1 million.
Analysts polled by Thomson Reuters had most recently forecast a
loss of 3 cents on $860 million in revenue.
Gross margin widened to 49.1% from 44% amid the revenue
gains.
Sales of Mattel's girls and boy brands unit, its biggest arm and
the one that includes Barbies and Hot Wheels, rose 14% as Barbie
logged 5% growth. The Wheels segment, which includes Hot Wheels,
Matchbox and Tyco R/C, rose 3%.
Meanwhile, Fisher-Price sales increased 11% and American Girl
sales rose 6%.
Shares closed at $23.75 on Thursday and have risen 82% in past
year. They were inactive premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com