Toymaker Mattel posted a disappointing fourth quarter as year-end sales fell short of expectations amid a tough economy, its results showed Wednesday.
Global sales for the maker of Barbie dolls and Fisher Price toys fell 22% in the latest quarter compared with the same period a year earlier. They fell 26% in the US market alone.
“Our fourth-quarter figures were below our expectations as the macroeconomic environment was more difficult than anticipated,” Ynon Kreiz, head of the group, said in a press release.
High inflation in the United States squeezed family budgets for end-of-year spending.
Inflation
Mattel’s earnings per share for the latest quarter fell to $0.18, from $0.53 a year earlier and analysts’ forecast of $0.29.
The title of the group fell more than 10% in electronic trading after the close of the New York Stock Exchange, where it had already closed with a drop of 1.20% in session.
Sales were flat throughout the year, with revenue of $5.435 billion. Earnings per share were $1.25, well below guidance of $1.38 and 5 cents lower than in 2021.
By 2023, Mattel expects comparable sales, at constant currency, but expects net earnings per share to underperform 2022, in the range of $1.10 to $1.20.
The financial director, Anthony DiSilvestro, assured that “despite the challenges encountered in the fourth quarter,” Mattel – Hasbro’s rival – “is outperforming the rest of the industry and gaining market share.”
“Over the year as a whole, we have strengthened our financial position and further reduced our debt,” he added.
Source: BFM TV
