BENGALURU: A fifteen per cent drop in International sales resulted in US toymaker Mattel reporting a 6.5 per cent decline in worldwide gross sales for the financial year ended 31 December, 2015 (FY-2015, current year). Mattel reported gross sales of $6,283.6 million in FY-2015 as compared to $6,718.4 million in FY-2014. International gross sales in the current year were $2,603.5 million (41.4 per cent of compared worldwide gross sales) as compared to $3,061.5 million (45.6 per cent of worldwide gross sales). North American region gross sales in FY-2015 increased 0.6 per cent to US$ 3,680.1 million (58.6 per cent of worldwide gross sales) as compared to $3,656.9 million (54.4 per cent of worldwide gross sales).
Mattel’s net sales in FY-2015 declined 5.3 per cent to $5,702.60 million as compared to $6,023.80 in the previous year. The toymaker’s net income declined 26 per cent to $369.40 million (6.5 per cent of net sales) as compared to $498.90 million (8.5 per cent of net sales) in the previous year.
“We are encouraged by our results in the quarter and for the year, which reflect solid progress on a number of important fronts,” said Mattel Chairman and CEO Chris Sinclair.”We achieved our goal of stabilizing the business, with improved gross sales both in the quarter and for the full year. In addition, we drove significant momentum across the majority of our core brands, most of which saw stronger retail sales and shipping, and we continued to make headway in key emerging markets like China and Russia. Overall, we are pleased with our performance at this stage of our turnaround,” he added.
Sales by brand
Mattel Girls and Boys Brands
For the fourth quarter (Q4-2015), worldwide gross sales for Mattel Girls & Boys Brands were $1,136.6 million, up 1 per cent in constant currency versus the corresponding prior year quarter. Worldwide gross sales for the Barbie brand were up 8 per cent in constant currency. Worldwide gross sales for Other Girls brands were down 28 per cent in constant currency. Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were up 26 per cent in constant currency. Worldwide gross sales for the Entertainment business, which includes Radica and Games, were up 16 per cent in constant currency.
For FY-2015, worldwide gross sales for Mattel Girls & Boys Brands were $3,464.2 million, down 2 per cent in constant currency versus the prior year. Worldwide gross sales for the Barbie brand were down 1 per cent in constant currency. Retail sales for Barbie accelerated on a global basis in 2015, driven by continued strong performance in the United States, and improved momentum in international markets. Worldwide gross sales for Other Girls brands were down 17 per cent in constant currency. Worldwide gross sales for the Wheels category were up 21 per cent in constant currency. Worldwide gross sales for the Entertainment business were up 1 per cent in constant currency.
Fisher-Price Brands
Q4-2015 worldwide gross sales for Fisher-Price Brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, were $626.2 million, up 13 per cent in constant currency versus Q4-2014. For FY-2015, worldwide gross sales for Fisher-Price Brands were $1.85 billion, up 7 per cent in constant currency versus FY-2014.
American Girl Brands
Q4-2015 gross sales for American Girl Brands, which offers American Girl-branded products directly to consumers, were $271.8 million, down 14 per cent in constant currency versus Q4-2014. FY-2015, gross sales for American Girl Brands were $572.0 million, down 7 per cent in constant currency versus the FY-2014.
Construction and Arts & Crafts Brands
Q4-2015 gross sales for Construction and Arts & Crafts Brands, which includes the MEGA BLOKS and RoseArt brands, were $130.2 million, up 11 per cent in constant currency versus Q4-2014. For FY-2015, gross sales for Construction and Arts & Crafts Brands were $351.7 million in FY-2014. Mattel acquired MEGA Brands Inc. on 30 April, 2014.
Dividend
The Board of Directors declared a 2016 first quarter cash dividend of $0.38 per share, which is flat compared to the first quarter of 2015. The dividend will be payable on 4 March, 2016 to stockholders of record on 17 February, 2016.
