Mattel Inc. continued its streak of poor financials posting fourth quarter net loss and declining earnings for fiscal year 2017.
The El Segundo-based company reported fourth quarter net loss of $281.3 million (82 cents a share) in 2017 compared to a profit of $173.8 million (51 cents a share) a year ago. The company’s revenue fell 12 percent to $1.61 billion from $1.83 billion over the same time period. The holiday season is regarded as a crucial time for toymakers.
The numbers are even more worrisome when comparing Mattel’s fiscal year results.
Its income declined to $318 million in 2017 from $1.05 billion in 2016 and revenue fell to $4.8 billion from $5.4 billion year-to-year. Mattel’s stock lost more than 40 percent of its value in 2017.
Mattel’s reasons for its poor performance was weak demand across its core brands including Barbie, Fisher-Price products and Hot Wheels, among others and the bankruptcy filing of one of its core customers, Toys R Us. According to a Securities and Exchange filing, the company also paid a one-time $457 million charge related to new U.S. tax laws.
Its stock closed $15.32 on Feb. 1, an 8.5 percent decrease compared to the previous day’s close.
Manufacturing and trade reporter Shwanika Narayan can be reached at email@example.com or 323-556-8351. Follow her on Twitter @shwanika.