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Fisher-Price’s Costly Recall
The recall of Fisher-Price’s popular Rock n’ Play sleeper, made by El Segundo-based Mattel Inc., has cost the company millions of dollars. In a conference call last week with analysts to discuss earnings, Fisher-Price said the recall cost it $27.3 million in the first quarter, and it anticipates $35 million in lost sales this year.
Fisher-Price on April 12 recalled 4.7 million units, which are designed to help put infants to sleep. The Consumer Product Safety Commission said consumers should stop using the product immediately.
There have been 30 infant deaths reported from unrestrained children that rolled over in the sleepers. In an April 15 note, UBS analysts said the damage isn’t expected to be as broad as a 2007 Mattel recall of 21 million toys that contained lead paint.
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Cacique buys El Sol Foods
Mexican-style cheese and chorizo brand Cacique Inc. announced April 22 the acquisition of Arizona-based El Sol Foods.
Monrovia-based Cacique declined to disclose details of the deal. The move broadens the family-owned company’s offerings with a line of refrigerated salsas that will be rolled out nationally this summer.
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Skechers Posts Weak Revenue Growth
Manhattan Beach-based Skechers USA Inc. posted weak revenue growth in comparison to recent quarters and faces a challenging domestic market amid a wave of retail closures, according to its first-quarter earnings report.
The company recorded $1.3 billion in sales in the first quarter, an increase of 2.1% from the same period last year, bolstered largely by its foreign markets. But exchange rates hurt its bottom line, and domestic sales sunk 6.3%.
Staff reporter Rachel Uranga can be reached at email@example.com or (323) 556-8351.
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