MonsterHigh
Consumer Products

Monster High grows while Mattel misses Wall Street expectations in Q4

Toyco Mattel's 4Q net income fell 17%, due to the payment of US$137.8 million to cover compensation and punitive damages to MGA Entertainment to satisfy the judgement of ongoing litigation over the Bratz brand.
February 1, 2013

Toyco Mattel’s 4Q net income fell 17%, due to the payment of US$137.8 million to cover compensation and punitive damages to MGA Entertainment to satisfy the judgement of ongoing litigation over the Bratz brand.

The El Segundo, California-based company earned US$306.5 million in the final quarter, compared to US$370.6 million over the same period last year. For the year, net sales were US$6.42 billion, representing a 2% growth over the previous year’s number. Revenue rose 5% to US$2.26 billion for the year, but missed Wall Street analysts expectations which were around $2.3 billion.

A bright spot for the company is the continued growth of the Monster High program. It is primarily responsible for the 5% bump in sales over last year for the Mattel Girls & Boys Brands business unit.  The unit grossed US$1.41 billion, while Barbie sales were down 4% and the Wheels business, which includes Hot Wheels brand and Tyco R/C was down 1% from last year. Worldwide gross sales for the Entertainment sector were down 21%, due to a decrease in Cars 2 merchandise sales.

Last week, Mattel’s chief rival Hasbro also announced that its 4Q failed to meet expectations.

About The Author
Gary Rusak is a freelance writer based in Toronto. He has covered the kids entertainment industry for the last decade with a special interest in licensing, retail and consumer products. You can reach him at garyrusak@gmail.com

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