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.