Mattel Cautious About Christmas

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Mattel Inc. on Friday reported an improved third quarter, thanks to good sales of “Toy Story 3” toys and its new World Wrestling Entertainment line, but gave a cautious sales outlook for the holidays.

The El Segundo toymaker reported net income of more than $283 million (77cents per share) compared with less than $230 million (63 cents) a year earlier. Net sales rose 2 percent to $1.83 billion, slowed in part by unfavorable currency exchange rates.

Analysts surveyed by Thomson Reuters on average expected per-share earnings of 76 cents on revenue of $1.94 billion.

Sales at the Fisher-Price division, which was hit by a massive voluntary recall late last month, were down 5 percent. The company, saying the recall has cost it about $8 million so far, said it was too soon to tell if the bad publicity will hurt holiday sales.

Barbie sales rose 6 percent as the company saw some success in revitalizing the iconic line, but Hot Wheels cars revenue fell 3 percent.

The company warned that it would have trouble meeting holiday season demand for its “Monster High” doll products and popular new dancing Mickey Mouse doll.

Chief Executive Bob Eckert said during a conference call that retailers are remaining cautious in ordering for the holiday season. “We do know that some key retailers are betting on a late Christmas, based in part on their experience during back-to-school,” he said, according to the Associated Press.

Shares closed down $1.55, or 6.5 percent, to $22.45 on the Nasdaq.

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