“EL SEGUNDO, Calif. (AP) — Barbie maker Mattel Inc.’s fourth-quarter net income fell 17 percent, weighed down by a litigation charge.
Its performance missed Wall Street’s expectations for the critical holiday period, and its shares fell almost 2 percent in premarket trading. It also raised its dividend.
The world’s largest toy maker earned $306.5 million, or 87 cents per share, for the three months ended Dec. 31. That compares with $370.6 million, or $1.07 per share, a year ago.
Removing the litigation charge, earnings were $1.12 per share. Analysts surveyed by FactSet expected $1.15 per share.
Revenue for the El Segundo, Calif.-based company rose 5 percent to $2.26 billion from $2.15 billion.Wall Street forecast $2.3 billion.
The November through December holiday period is key for toy makers because it can make up to 40 percent of their revenue during the time. Toy sellers have been under pressure as more kids clamor for electronic gadgets like tablets. In addition, toy sellers like Wal-Mart and others have been cautious ordering inventory.
Worldwide gross sales for the Mattel girls and boys brands climbed 5 percent in the quarter. The figure jumped 55 percent for its other girls brands, mostly because of its Monster High products. At American Girl, worldwide gross sales increased 13 percent. The figure rose 6 percent for Fisher Price.
Results were not as good for Barbie, which reported a 4 percent decline in worldwide gross sales. The Wheels segment, which includes Hot Wheels, Matchbox and the Tyco R/Co brands, posted a 1 percent dip primarily due to Matchbox…”
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