Mattel’s Profits Rise 82 Percent
July 17, 2009 by Mark Ellis
Filed under Business
Toy giant and creator of Barbie, among other world-famous toy brands, has experienced an 82-percent surge in profits in its second quarter, surpassing analyst expectations. However, the development comes after dramatic cost cutting measures on the part of Mattel, which managed to create the profit despite of a 19 percent drop in sales this quarter.
According to Mattel, these cost cutting measures are not going away any time soon, as the company hopes to avoid another disastrous holiday season by keeping inventory small and costs low. Mattel shares jumped at the news, increasing by 7.6 percent, or $1.23, to $17.42 a share. The company has seen its stocks worth as low as $10.36 and as high as $21.95 in the past year.
Mattel has blamed the decrease in sales on a lack of retailer orders, fewer toys related to summer movies, and the stronger dollar. CEO Robert Eckert has expressed his confidence that this trend will continue for the rest of the year as retailers weigh their toy orders against consumer demand.
Image: Flickr
