EL SEGUNDO, Calif. – Mattel's profit plunged 61 percent in the second quarter, weighed down by costs tied to its acquisition of Mega Brands, but sales of its iconic Barbie doll continue to sag and sales of Fisher-Price products were slow.
The world's biggest toy company earned $28.3 million, or 8 cents per share, for the three months ended June 30. That's down from $73.3 million, or 21 cents per share.
Mattel is spending about $423 million on the maker of Mega Blocks. Excluding the costs of buying Mega Brands and also a tax benefit, earnings were 13 cents per share.
That's a nickel short of what Wall Street was expecting, according to a FactSet poll.
Revenue declined 9 percent to $1.06 billion from $1.17 billion, which is also short of what most were looking for. Company shares slumped 5 percent before the opening bell Thursday.
Barbie sales dropped 15 percent in the quarter, while Fisher-Price fell 17 percent. Hot Wheels sales dipped 2 percent.
American Girl continued to show strength, with sales up 6 percent.
Mattel Inc. declared a third-quarter dividend of 38 cents per share. The dividend will be paid on Sept. 19 to shareholders of record on Aug. 27.