Toy giant Mattel has revealed its third quarter financial figures.
Worldwide net sales for the period decreased by eight per cent to $1.79 billion from $1.95 billion last year, including unfavourable changes in currency exchange rates of three per centage points. Domestic gross sales were down two per cent and international gross sales fell 14 per cent.
Operating income for the quarter was $336.5 million, compared to $315.3 million in the prior year quarter.
"As expected, revenues continue to be challenging this year due to the overall economic environment, retailers tightly managing inventory, foreign exchange rates and the lack of entertainment-inspired toy lines," said Robert Eckert, chairman and CEO at Mattel. "That said, we are continuing to make strong progress on reducing costs, rebuilding margins and generating strong cash flow."
In Q3, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.08 billion, down ten per cent versus a year ago. Worldwide gross sales for the Barbie brand declined eight per cent compared to last year, with essentially flat domestic sales offset by international declines.
Worldwide gross sales for Other Girls Brands were down 19 per cent.
In the Wheels category, which includes Hot Wheels, Matchbox and Tyco, worldwide gross sales were down three per cent, while in Entertainment, worldwide gross sales declined 15 per cent for the quarter.
Q3 worldwide gross sales for the Fisher-Price Brands business unit were $784.8 million, down six per cent on the previous year, primarily due to declines in Fisher-Price core and Fisher-Price Friends domestically.