The economic crunch doesn’t seem to be letting up on the toy industry, as El Segundo, California-based Mattel took a hit the second quarter.
The toyco reported net income of US$21.5 million, up from last year’s US$11.8 million during the same quarter, but net sales were down 19% to US$898.2 million from US$1.11 billion last year. Chairman and CEO Robert Eckert noted that the company met expectations for the quarter, but that revenues were down due to a lack of toys based on summer entertainment properties and foreign exchange rates.
Domestic gross sales were also down 12% with international falling 26%, while Mattel’s core brands also saw declines. Worldwide gross sales for the Mattel Girls & Boys Brands business unit were down 25% to US$540.6 million, while the Barbie brand saw lower international sales, seeing a dip of 15%, though its retail sales trends were strong.
With declines in High School Musical and Polly Pocket doll lines, worldwide gross sales for Other Girls Brands were down 23%, and worldwide gross sales for the Wheels category – Hot Wheels, Matchbox and Tyco R/C brands – decreased by 28%, mostly driven by declines sales of Speed Racer products. Gross sales for American Girl Brands, meanwhile, sat flat at US$61 million. And again, from the lack of toys based on summer entertainment properties, the Entertainment business, which includes Radica, games and puzzles, was down 32% this Q2.
Its preschool unit also took a hit, as Fisher-Price Brands dipped 14% to US$369.9 million as compared to the previous year.