Mattel shares jump 13 percent
2nd-quarter earnings, Bratz verdict cap week
Mattel Inc., the world’s largest toymaker, surged the most in almost six years in New York trading Friday after posting profit that fell less than analysts estimated and winning a jury verdict against MGA Entertainment over the origin of the Bratz dolls.
Second-quarter net income dropped 48 percent to $11.8 million, or 3 cents a share, as legal expenses rose, the maker of Barbie dolls and Hot Wheels said Friday.
The East Aurora-based Fisher-Price, a subsidiary of Mattel, saw a 10 percent sales increase, according to Kevin Curran, general manager and senior vice president of Fisher- Price Core.
Curran said in a statement that the increase “can be traced to strong growth in our infant toys and boys Imaginext lines, including the new Imaginext Batcave playset.”
Fisher-Price looks to have strong sales in the fall and through the holiday season, Curran said.
“Retailers are stocking up heavily in anticipation of a very strong holiday season for Fisher-Price, following last year’s record $2.4 billion in worldwide sales,” he said. “This fall, several new products are expected to drive Fisher-Price sales to another record.”
Mattel’s international sales climbed 15 percent, helped by the dollar’s decline.
Mattel shipped Batman toys in the second quarter tied to Warner Bros.’ “The Dark Knight” film. Mattel may be able to use movie products tied to Batman and “Kung Fu Panda,” and price increases to counter decreases in Barbie as well as higher costs for plastics, Chinese labor and shipping.
American Girl doll sales jumped 9.5 percent to $61.1 million on products related to “Kit Kittredge: An American Girl” film.
Sales rose 11 percent to $1.11 billion, El Segundo, Calif.-based Mattel said in a statement. Selling and administrative expenses climbed to 31.3 percent of sales, hurt by legal costs from the MGA suit and litigation related to last year’s recall of 21 million Chinese-made products.
Mattel climbed $2.38, or 13 percent, to $20.66 on Friday, the biggest gain since October 2002.
A federal jury in Riverside, Calif., agreed Thursday that designer Carter Bryant made most of the first sketches of the pouty, multiethnic Bratz characters while he was employed by Mattel in 1999 and 2000. The verdict helps clear the way for Mattel to seek hundreds of millions of dollars in damages for copyright infringement from closely held MGA.
News Business Reporter Melissa Repko contributed to this report.
