Mattel Posts Narrower-Than-Expected Q1 Loss, Shares Jump

Shares of Mattel, Inc. MAT jumped more than 7 percent in after-hours trading after the company reported a narrower-than-expected loss for the first quarter. The El Segundo, California-based company posted a quarterly net loss of $58.2 million, or $0.17 per share, versus a year-ago loss of $11.2 million, or $0.03 per share. Its adjusted loss came in at $0.08 per share in the latest quarter. Its net sales slipped to $922 million from $946 million, while net sales rose 5 percent in constant currency. However, analysts were expecting a loss of $0.09 per share on revenue of $896.54 million. Gross sales climbed 9 percent in constant currency in the North American Region, while gross sales for the International Region gained 2 percent in constant currency. Worldwide gross sales for Mattel Girls & Boys Brands gained 1 percent in constant currency to $605.2 million in the latest quarter, while gross sales for the Barbiebrand slipped 5 percent in constant currency. Worldwide gross sales for Fisher-Price Brands rose 3 percent in constant currency to $264.0 million, while gross sales for American Girl Brands came in flat versus the year-ago period to $106.1 million. Gross sales for Construction and Arts & Crafts Brands came in at $38.3 million in the first quarter. Its adjusted operating loss narrowed to $14.6 million, versus $27.7 million in the year-earlier period. The company's board declared a Q2 cash dividend of $0.38 per share. "In the first quarter, we took a number of steps to implement a rapid turnaround at Mattel," said Christopher Sinclair, Mattel Chairman and CEO. "We are already benefitting from better decision-making, alignment and enhanced accountability. And we've begun to refocus our culture on creativity, innovation and improving our speed to market. While we still have a lot of work to do, we're starting to see progress with our core brands like Barbie and Fisher-Price, and I am confident we are making the changes necessary to perform better in the future." The average estimate among 10 Estimize users was for a loss of $0.09 per share and revenue of $897.96 million. Mattel shares jumped 7.64 percent to $27.20 in the after-hours trading session.