Calgary Herald

Mattel sees earnings slow

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Mattel Inc. reported weaker-than-expected quarterly results as the world’s largest toymaker struggled to persuade shoppers to buy Barbie dolls at higher prices and retailers cut back on inventory.

Mattel shares, which have gained more than 22 per cent since the beginning of this year, fell as much as 10 per cent to $30.59, their lowest in two months.

Toymakers have been forced to offer discounts to lure customers but Mattel increased prices this year to combat rising costs for materials and higher wages in China, where most U.S. toymakers assemble their products.

Hasbro Inc., which is due to report its results next week, said last month it was cutting 170 jobs, mostly in the United States, as the No. 2 U.S. toy company recovers from sluggish sales in North America.

Mattel’s results indicate shoppers remain reluctant to pay more for products in an uncertain economy.

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