This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mattel's Tumble Signals Timeout for Barbie

NEW YORK ( TheStreet) - Toy maker Mattel Inc. (MAT - Get Report) shares fell the most in fifteen months after U.S. sales declined in the second-quarter compared to the same period a year ago.

The El Segundo-based company lost 6.8% to $43.16, declining for the third consecutive day and paring its 2013 advance to 18%.

International revenue rose 4% but were offset by a 2% drop in U.S. sales as brands led by Barbie, Hot Wheels and Tyco R/C regressed. Mattel's American Girl was a bright spot, growing 14% growth and delivering $78.2 million of this quarter's $792.4 million of gross sales.

"It's a small quarter... about half of that decline was linked to a shift in promotional events," said Monness, Crespi, Hardt and Co analyst Jim Chartier, adding that the late-winter months hold few events or holidays that might propel sales.

Mattel has a 'buy' rating or its equivalent from 10 equity analysts compared to six that rate the shares as 'hold' or 'neutral.' "Summer tends to be a period of underperformance as estimates are in motion, results are somewhat insignificant to the year, and visibility into bookings and consumer response to new product initiatives is only starting to grow," wrote Piper Jaffray analysts in a report led by Stephanie S. Wissink.

Mattel's gross margin remained flat while operating income fell to $94.8 million, compared to $131.4 million last year. Mattel spent $119 million buying back 2.7 million shares in the second quarter.

"While we delivered another quarter of sales growth and strong gross margins, lower profits in the second quarter reflect an asset impairment charge and strategic investments made to support consistent future growth," said Mattel Chairman and Chief Executive Officer Bryan G. Stockton in a statement.

The Board of Directors announced a third quarter dividend of $0.36 per common share. The dividend will be payable on September 20th, 2013.

-- Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MAT $30.61 -0.68%
AAPL $94.19 -1.04%
FB $118.08 0.55%
GOOG $695.81 0.50%
TSLA $234.18 0.80%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs