Mattel, Inc. (NASDAQ: MAT) reported stronger-than-expected results for its fourth quarter on Thursday.
Mattel reported operating income of $107 million in the fourth quarter, an improvement of $358 million, versus prior year; the largest year-over-year fourth quarter improvement since 2009. The company also achieved $521 million of run-rate cost savings exiting 2018 and expect to exceed cumulative $650 million run-rate cost savings target coming out of 2019
For the fourth quarter, net sales were down 5% as reported, and 3% in constant currency, versus the prior year's fourth quarter. Gross sales were down 11% as reported, and 9% in constant currency reflecting a negative 8% impact from the Toys "R" Us liquidation and a negative 2% impact from the slowdown in our China business.
CEO Ynon Kreiz said: "Our fourth-quarter results demonstrate meaningful progress in executing our strategy and significant improvement over last year. We remain focused on advancing our strategy to restore profitability and regain top-line growth in the short-to-mid-term and are laying the groundwork to capture the full value of our IP in the mid-to-long-term.
“After three consecutive quarters of solid, disciplined execution, we are well on our way to becoming an IP-driven, high-performing toy company and creating long-term value for our shareholders.”
The El Segundo, Calif.-based Mattel is a leading global children's entertainment company that specializes in design and production of quality toys and consumer products. We create innovative products and experiences that inspire, entertain and develop children through play.
Shares in MAT climbed $3.13, or 25.3%, to $15.49
