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."

If you liked this article you might like

This Is How to Avoid Becoming Amazon Roadkill

Cramer: How to Avoid Being Amazon Roadkill

Toys 'R' Us Is Nearing Its End These 3 Signs Reveal

Lego Posts First Sales Decline in 13 Years but Remains a Big Dog in Toyland

Dave and Busters, Hasbro, Tyson Foods: 'Mad Money' Lightning Round