Shares of Mattel (NYSE:MAT) slumped nearly 8% Monday after the company said its first-quarter profit halved and missed expectations, as price increases for some of its most popular toys, including Barbie, sliced into North American sales.
The toymaker reported net income of $7.8 million, or 2 cents a share, compared with a year-earlier $16.6 million, or 5 cents.
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Revenue for the El Segundo, Calif.-based company was $928.4 million, down 2% from $951.9 million a year ago.
Analysts in a Thomson Reuters poll were looking for stronger earnings of 7 cents on sales of $988.6 million.
The results were negatively impacted by 4 cents a share related to acquisition and integration costs. They also fell on higher prices that caused demand in the U.S. and Canada to slump.
On a regional basis, sales fell 9% in the North American region, partially offset by a 7% improvement in its international business. Demand slipped for Mattel Girls & Boys brands, causing sales to slide 4% year-over-year to $622.2 million.
While Barbie sales fell 6% on higher prices for the iconic dolls, American Girls Brands climbed 4% to $76 million.
Mattel’s board declared a second-quarter cash dividend of 31 cents a share, payable on June 15 to shareholders of record on May 23. The annualized dividend is $1.24 a share, which represents a 35% increase from last year.