Mattel gains after sales beat expectations

Mattel beats on top line estimates
Mattel beats on top line estimates

Mattel reported a mixed quarterly results on Thursday, posting a larger-than-expected quarterly loss and revenue that topped estimates.

The stock initially gained as much as 4 percent in extended trading.

In the quarter ended March 31, the toy maker said it posted a net loss of $311.3 million, or 90 cents per share. Those figures are larger than the net loss of of $113.2 million, or 33 cents per share, a year ago.

Excluding items, Mattel's loss was 60 cents per share, which was larger than the loss of 39 cents a share analysts were expecting, according to a consensus estimate from Thomson Reuters.

Revenue fell to $708.4 million from $735.6 million a year ago. Analysts were expecting Mattel to have $694.4 million in revenue.

The maker of Barbie dolls and Fisher-Price toys has had a rough year, hurt by the bankruptcy — and now liquidation — of retailer Toys R Us.

Toys R Us was Mattel's second-largest customer and handled many of its exclusive products.

The company said its gross sales in North America fell by 4 percent as the toy retailer liquidated. But Mattel said that decline was partially offset by strong sales of Barbie and Hot Wheels. Mattel said strength in those brands also contributed to a 5 percent gross sales increase overseas.

Sales for the Barbie brand surged 24 percent year over year worldwide. Hot Wheels saw its sales soar 15 percent year over year.

In a Thursday earnings call, the company said that this quarter's results are what it sees as the beginning of "great momentum."

Last week, the company said CEO Margaret Georgiadis would step down to take the top job at genomics company Ancestry.

Georgiadis will be replaced by Ynon Kreiz, who has been a director on Mattel's board since June 2017.