Published February 01, 2013
Mattel Inc missed Wall Street's profit and sales estimates for the fourth quarter on weak demand for Barbie dolls and movie-themed toys in the holiday season.
Friday's news from the world's largest toy company came just days after rival Hasbro Inc warned its fourth-quarter revenue could fall far short of analysts' estimates. Hasbro blamed weaker-than-expected demand for playthings in what is typically the industry's biggest-selling season of the year.
Mattel, also home to Hot Wheels cars and Fisher-Price toys, said its net income had fallen to $306.5 million, or 87 cents a share, from $370.6 million, or $1.07 a share, a year earlier.
Excluding a litigation charge, the company earned $1.12 a share, missing the analysts' average estimate of $1.15, according to Thomson Reuters I/B/E/S.
Net sales rose 5 percent to $2.26 billion, but fell short of the analysts' average estimate of $2.29 billion.
Sales of Barbie branded products fell 4 percent in the quarter. Sales at Mattel's entertainment business, which includes electronic games, were down 13 percent, mainly on weak demand for "Cars 2" movie-themed toys.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)