Mattel Posts Larger than Expected Loss

Mattel, the biggest toy maker in the United States, posted a first quarter loss of $51 million. The good news for Mattel is that their 50th anniversary Barbie sold better than expected and saved the company from an even larger loss.

Many experts believed that Mattel would post a loss of around $.13 per share in the first quarter, just like they did in 2008. However, the $51 million loss is slightly more — estimated to be $.14 per share. In the first quarter of 2008, Mattel lost $46.6 million.

Two things hurt Mattel in the first quarter of 2009. First of all, the global economic woes has consumers in the United States spending less. As a result, toys are one of the first items scratched off the wish list. Secondly, the first quarter of each year is always slow for toy makers. The final quarter is usually when toy makers actually make their money.

The 50th anniversary Barbie helped Barbie sales in the United States grow almost 20% from this time last year.

Barbie by Mattel (Image: Flickr)