Mattel, Hasbro quarterly results show diverging post-Toys R Us paths

N EW YO R K • Quarterly reports from Mattel and Has

show that while the demise of Toys R Us has shaken up the industry, the two toymakers’ paths are diverging less than a year later.

Late Thursday, Mattel posted better-than-expected earnings per share and revenue for the key holiday quarter, sending its shares up sharply. The maker of Barbies and Hot Wheels named a new CEO last April and has launched a restructuring that is starting to take hold, analysts said.

For the three months ended in December, Mattel swung to a profit of US$14.9 million after posting a loss a year earlier. Revenue of US$1.52 billion was down five per cent year over year, but topped estimates. The loss of Toys R Us — which liquidated stores in the spring — lead to an eight-per-cent sales drop.

Still, Mattel Inc. reported it achieved US$521 million in savings during the fourth quarter and expects to exceed its savings target of at least US$650 million this year.

Its stock rallied 21 per cent in afternoon trading Friday, to US$15, putting it up 50 per cent in the year to date.

While Hasbro Inc. also returned to a profit in the fourth quarter, the maker of Nerf and Power Rangers again missed Wall Street expectations for both sales and net income. The company earned US$8.8 million for the period ended Dec. 30.

Revenue dropped 13 per cent to US$1.39 billion, short of the US$1.52 billion Wall Street predicted.