Amid its ongoing restructuring efforts, California-based toyco Mattel reported a 3% drop in Q3 gross sales in constant currency (down by 11% as reported), driven by slumping Barbie sales and a strong US dollar.
Sales of the 56-year-old Barbie brand fell by 4% in constant currency and by 14% on a reported basis, marking the eighth straight quarter of declining sales for the iconic doll property.
In Q3 in constant currency, North American gross sales declined by 4%, while international sales saw a 2% drop. However, reported North American gross sales dropped by 5% and international gross sales fell by 19%.
Mattel’s adjusted operating income for the quarter was US$322 million versus US$435 million in the same quarter a year ago. Adjusted earnings per share came in at US$0.71 compared to prior year adjusted earnings of US$0.98.
For specific sales by brand, gross sales for Mattel’s Girls and Boys brands were US$1.12 billion, representing a 5% decline in constant currency compared to 2014.
And aside from Barbie, worldwide gross sales for other girls brands were down 20%, following a 6% decrease in Q2 while Mattel’s entertainment business’s revenues fell by 4%.
However, worldwide gross sales for Mattel’s Wheels category, which includes Hot Wheels and Matchbox, saw an uptick of 19% in constant currency.
For Fisher-Price brands, worldwide gross sales were US$$625.3 million, up 1% versus last year, but American Girl experienced a 2% decline at US$109.9 million.
Rounding out its categories, Mattel’s construction and arts & crafts brands, which include MEGA BLOKS and RoseArt, rose by 2% in gross sales coming in at US$118.5 million.
Despite Mattel’s continuing sales struggles, CEO Christopher Sinclair, whose position was made permanent in April, stated that results were in line with the company’s expectations at this stage of the turnaround.
Brighter days may be ahead for the company with new projects like this fall’s DC Super Hero Girls line.