Mattel, Inc. (NASDAQ: MAT) today reported 2014 first quarter financial results. For the quarter, the Company reported a net loss of $11.2 million, or $0.03 per share, compared to last year’s first quarter net income of $38.5 million, or $0.11 per share.
“For the first quarter, revenues were consistent with our expectations as we worked through inventories in a challenging global retail environment,” said Bryan G. Stockton, Mattel Chairman and Chief Executive Officer. “In addition, we managed costs and streamlined our workforce as part of our initiatives to drive efficiencies throughout the organization. Importantly, we made significant progress against two of our strategic objectives, entering new categories and strengthening our Girls Portfolio. We launched BOOMco., our highly-anticipated entry into the outdoor category, announced the acquisition of MEGA Brands Inc., a leading player in the rapidly-growing construction and arts & crafts categories, and continued the global launch of our newest doll franchise, Ever After High ®. As we approach the second half of the year, and the all-important holiday season, we are optimistic that these initiatives will help drive our business this year and for many years to come.”
For the quarter, net sales were $946.2 million, down 5% compared to $995.6 million last year. On a regional basis, first quarter gross sales decreased 2% in the North American Region, which consists of the U.S., Canada and American Girl, including a 1 percentage point unfavorable impact from changes in currency exchange rates. For the International Region, gross sales decreased 7%, including a 1 percentage point unfavorable impact from changes in currency exchange rates. Operating income for the quarter was $6.2 million, which included an incremental severance expense of $16 million as part of streamlining our workforce to drive efficiencies throughout the organization, compared to prior year’s operating income for the quarter of $65.8 million.
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