Mattel (MAT) has a market cap of $8.9 billion. It fell 17.7% and closed at $25.99 per share on January 26, 2017. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -13.6%, -8.3%, and -5.7%, respectively, on the same day. Mattel is trading 12.4% below its 20-day moving average, 13.3% below its 50-day moving average, and 16.0% below its 200-day moving average.
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Performance in 4Q16
Mattel reported 4Q16 net sales of $1.8 billion—a fall of 8.3% compared to net sales of $2.0 billion in 4Q15. Gross sales of Mattel girls & boys, Fisher-Price, and construction and arts & crafts brands fell 7.5%, 3.0%, and 4.1%. Gross sales of American Girl brands rose 4.5% in 4Q16—compared to 4Q15. The company’s gross profit margin and operating margin narrowed by 320 basis points and 40 basis points, respectively, in 4Q16—compared to the same period last year.
Its net income and EPS (earnings per share) fell to $173.8 million and $0.50, respectively, in 4Q16—compared to $215.2 million and $0.63, respectively, in 4Q15. It reported adjusted EPS of $0.52 in 4Q16—a fall of 20.0% compared to 4Q15.
Mattel declared a cash dividend of $0.38 per share on its common stock. The dividend will be paid on March 3, 2017, to shareholders of record on February 16, 2017.
Fiscal 2016 results
In fiscal 2016, Mattel reported net sales of $5.5 billion—a fall of 4.3% YoY (year-over-year). The gross margin narrowed by 240 basis points in fiscal 2016.
Its net income and EPS fell to $318.0 million and $0.92, respectively, in 2016—compared to $369.4 million and $1.08, respectively, in 2015. It reported adjusted EPS of 1.06 in 2016—a fall of 16.5% YoY.
Mattel’s cash and cash equivalents fell 2.6%, while its inventories rose 4.5% between 2016 and 2015. Its current ratio rose to 2.0x in 2016—compared to 1.8x in 2015.
In the next part of this series, we’ll discuss Spectrum Brands Holdings (SPB).