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 (MAT) Shares Retail Woes on Sparse Christmas

NEW YORK (TheStreet) -- Mattel (MAT - Get Report) 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.

Must Read: Abercrombie & Fitch (ANF) Execs Play Musical Chairs

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."

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 $31.33 0.77%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs