Mattel reports weak sales due to disappointing holiday season 2014-03-14
By AASource.com news team
Mattel, which is the world’s biggest toy maker, has reported a decrease in its share price by more than 9 percent in the pre-market trading in early February 2014. Sales of major toy providers like Barbie and Fisher-Price preschool items also slipped in the fourth quarter of 2013.
Byran Stockton, CEO of Mattel, regarded 2013 as a challenging and transformative year at retails. Toy makers largely count on every November and December holiday season in order to attain the goal of having 40 percent or more of annual revenues. However, traditional toy makers are really struggling since most kids have been attracted by more dynamic electronic devices and video games.
Despite the fact that the fourth-quarter net income soared by 21 percent from the year-ago result, Mattel’s quarterly performance failed to meet both analyst estimates and the company’s own expectations. As regards the three months ended 31 December, 2013, Mattel earned US$369.2 million or US$1.07 a share.
Both Barbie and Fisher-Price’s sales declined by 13 percent. Sales for Hot Wheels dropped by 8 percent. Another production line, American Girl, has reported a 3 percent sales gain. Mattel stated that its performance was helped by sales of its 2013 Girl of the Year, Saige.
Mr. Stockton said Mattel is particularly weak in the US market, with less satisfactory results when compared with prediction. It seems like more viable measures need to be adopted so as to boost the sales of Mattel’s products.
To counter the fierce competition from rival markets like the interesting games on tablets and mobile phones, even toy giants like Mattel need to rack their brain in thinking of ways to better promote their products and invent toys that can really appeal to their target group - children.