El Segundo, California-toy giant Mattel reported a net loss of US$46.6 million for Q1, after suffering a 2% downturn in worldwide net sales and a dip of 11% in domestic gross sales.
According to chairman and CEO Robert A. Eckert, the loss wasn’t unexpected since last year’s Q1 was positively affected by hot properties T.M.X. Elmo and Disney/Pixar’s Cars.
Worldwide gross sales for core brands Barbie and Hot Wheels were up 2% and American Girl was up 10%, while overall Fisher-Price sales dipped 1%.
For the quarter, net sales were US$919.3 million, down 2% compared to US$940.3 million last year, including a bump from favorable changes in currency exchange rates.
Operating loss for the quarter was US$36.5 million, compared to prior year’s operating income for the quarter of US$20.6 million.
Despite the middling news, the company is looking forward to the next quarter and has its hopes pinned on feature film-led programs for Speed Racer, Batman: The Dark Knight Returns and Kung Fu Panda.