(Adds sales by brand, stock drop)
By Dhanya Skariachan
Jan 31 Mattel Inc reported
lower-than-expected quarterly results on Friday due to weak
demand in the United States during the all-important holiday
selling season, and the No. 1 toy company's shares fell nearly
The latest holiday season turned out to be one of the
weakest since 2008, when the U.S. economy was reeling from a
recession. Bad weather, limited discretionary dollars for many
shoppers and six fewer days between Thanksgiving and Christmas
in 2013 hurt U.S. sales for many retailers.
For Mattel, fourth-quarter gross sales fell 10 percent in
"By every account, 2013 was a challenging and transformative
year at retail," Chief Executive Officer Bryan Stockton said in
Shares of Mattel were down 9.7 percent at $38.84 in trading
before the market opened.
Net income rose to $369.2 million, or $1.07 a share, from
$306.5 million, or 87 cents a share, a year earlier. Analysts on
average were expecting a profit of $1.20 a share, according to
Thomson Reuters I/B/E/S.
Sales fell 6 percent to $2.11 billion, while analysts had
forecast $2.37 billion.
Industrywide, demand was particularly weak for action
figures and preschool toys, market research firm NPD Group said
earlier this month. Those categories are the largest
respectively for Mattel and rival Hasbro Inc, Wells
Fargo analyst Tim Conder has said.
Mattel's worldwide gross sales were down 13 percent for its
Barbie brand; down 8 percent for Hot Wheels, down 13 percent on
Fisher-Price and up 3 percent for American Girl.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)