Mattel Inc.'s (MAT) first-quarter earnings soared as a
double-digit rise in American Girl doll sales drove the toy maker's
better-than-expected revenue growth.
"We are very pleased with the performance of our Girls portfolio
and the strong results across all regions, particularly Europe,"
said Chairman and Chief Executive Bryan G. Stockton.
Mattel, the world's largest toy maker by sales, has posted
improved revenue in recent quarters as strong demand for Monster
High and American Girl dolls and the Fisher-Price preschool line
helped offset declines for Barbie and Wheels toys. The toy industry
has been challenged by a weak macroeconomic environment and
increased competition from mobile devices, which are changing how
kids and their parents play.
Mattel reported a profit of $38.5 million, or 11 cents a share,
up from $7.8 million, or two cents a share, a year earlier. Net
sales increased 7.2% to $995.6 million.
Analysts polled by Thomson Reuters had most recently forecast
per-share earnings of nine cents on revenue of $986 million.
Gross margin rose to 54.2% from 51%.
Sales of Mattel's girls and boy brands unit--its biggest arm and
the one that includes Barbie and Hot Wheels--rose 11% to $692.2
million. Both Barbie and Wheels sales declined 2%. Sales decreased
7% at Fisher-Price brands and jumped 32% at its American Girl
brands.
North American gross sales were up 5% and international gross
sales climbed 9%.
Shares closed Tuesday at $42.98 and were inactive premarket. The
stock has risen 17% since the beginning of the year.
Write to Melodie Warner at melodie.warner@dowjones.com
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