Mattel ( NASDAQ: MAT ) shares slid nearly 10% during Wednesday’s extended session after the toy manufacturer flagged disappointing holiday season sales.
The California-based company notched $0.18 in adjusted earnings per share, $0.11 below the bar set by Wall Street. Meanwhile, a 22.2% drop in revenue from the prior year quarter to $1.4B was a far steeper decline than expected, missing the $1.68B expectation. The company reported a 630 basis point contraction in gross margins from the prior year due to “inventory management efforts.”
“Our fourth quarter results were below our expectations, as the macro-economic environment was more challenging than anticipated,” CEO Ynon Kreiz admitted. “While less than expected, POS grew in the quarter and the full year and we achieved growth in net sales in constant currency for the fourth consecutive year. The increase in consumer demand for our product speaks to the strength of our portfolio as a whole, even in a challenging environment.”
Moving forward, the company anticipates 2023 earnings per share to range from $1.10 to $1.20, well below the $1.66 consensus. Management sees net sales for the full year as comparable to 2022 net sales that reached $5.44B. Analysts had expected growth to $5.92B. The company expects to resume share repurchases in 2023.
Mattel ( MAT ) stock slid 9.71% shortly after the print.
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Mattel stock slumps on earnings miss, light guidance