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
TheStreet Open House

Mattel (MAT) Shares Retail Woes on Sparse Christmas

NEW YORK (TheStreet) -- Mattel (MAT) saw worldwide net sales drop 6% over the holiday quarter with iconic brands Barbie, Hot Wheels and Fisher-Price bearing the brunt of poor numbers. In premarket trading on Friday, shares were down 9.7% to $38.83.

Retailers have had it tough over this holiday season as conservative consumer spending and an aggressively promotional environment hurt sales.

Mattel was not immune: For the December-ended quarter, the toy manufacturer suffered a 10% drop in North American gross sales, while international gross sales remained flat.

By brand, Barbie and Fisher-Price each lost 13% in gross sales, and Hot Wheels was down 8%. Though American Girl and Disney Princess items remained strong brands, their sales weren't enough to offset sluggishness across the portfolio.

The El Segundo, Calif.-based company recorded quarterly per-share earnings of $1.07 on revenue of $2.11 billion, 6.6% lower than a year earlier. Analysts surveyed by Thomson Reuters had expected earnings of $1.20 a share on $2.37 billion in revenue.

For fiscal 2013, North American gross sales fell 2%, offset by a 5% increase internationally. Full-year net earnings of $2.58 a share missed consensus by 16 cents. Revenue of $6.48 billion fell short of estimates by $262 million.

"By every account, 2013 was a challenging and transformative year at retail," said CEO Bryan G. Stockton in a statement. ""Overall, the global toy industry held up pretty well, but we did not meet our growth expectations for the fourth quarter, or the full year, mainly driven by weakness in the U.S. market."

It's a wait-and-see game to see whether weakness in the U.S. market is simply a factor of lower-than-normal store foot traffic in retailers such as Toys "R" Us or part of a larger problem of kids favoring electronics over traditional toys.

TheStreet Ratings team rates MATTEL INC as a Buy with a ratings score of A+. The team has this to say about its recommendation:

"We rate MATTEL INC (MAT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs