Mattel reported its financial results for the fourth quarter and full-year 2019, stating: “[The] Company exceeded its full year 2019 guidance, making consistent progress in its transformation into an IP-driven, high-performing toy company.” Mattel was the #1 U.S. and global toy company in 2019, per NPD.
For the year, Net Sales of $4,505 million were flat as reported including the negative foreign exchange impact of $75 million, and up 1% in constant currency, versus the prior year. Gross Sales were flat as reported including the negative foreign exchange impact of $92 million, and up 2% in constant currency. Reported Operating Income was $39.2 million, an improvement of $273.6 million, and Adjusted Operating Income was $156.2 million, an improvement of $269.3 million. Reported Loss Per Share was $0.62, an improvement of $0.93, and Adjusted Loss Per Share was $0.30, an improvement of $0.85.
For the fourth quarter, Net Sales of $1,474 million were down 3% as reported including the negative foreign exchange impact of $9 million, and down 3% in constant currency, versus the prior year’s fourth quarter. Gross Sales were down 3% as reported including the negative foreign exchange impact of $12 million, and down 2% in constant currency. Reported Operating Income was $67.6 million, a decline of $38.0 million, and Adjusted Operating Income was $109.3 million, a decline of $2.2 million. Reported Earnings Per Share was $0.00, a decline of $0.03, and Adjusted Earnings Per Share was $0.11, an improvement of $0.08.
Ynon Kreiz, Chairman and CEO, Mattel said: “2019 was an important inflection point in our turnaround. We stabilized our topline after five consecutive years of revenue decline, continued to significantly improve profitability, and achieved positive operating cash flow and positive free 2 cash flow for the first time in three years. We are very encouraged by the consistent progress the company is making and expect to continue to build on this momentum. We remain focused on the execution of our multi-year turnaround strategy to transform Mattel into an IP-driven, high-performing toy company and create long term shareholder value.”
Joseph Euteneuer, CFO, Mattel said: “In 2019, our methodical execution of our strategy to restore profitability generated significant improvements across key metrics, including margins, operating income, EBITDA, and cash flows. We are extremely pleased with our results to date and are very proud of the efforts made by the Mattel team.”
For the year, Gross Sales in the North America segment were flat as reported, and up 1% in constant currency, primarily driven by growth in Vehicles (including Hot Wheels partially offset by lower sales of Jurassic World and CARS vehicles), Dolls (including Barbie partially offset by lower sales of Enchantimals) and Action Figures, Building Sets and Games (including Toy Story 4 and MEGA partially offset by lower sales of Jurassic World). This growth was partially offset by a decline in Infant, Toddler and Preschool (including Fisher-Price Friends, and Power Wheels). Net Sales in the International segment increased 3% as reported, and 7% in constant currency. Gross Sales in the International segment increased 2% as reported and 6% in constant currency.
For the 12 months ended December 31, 2019, Cash Flows provided by Operating Activities improved by $208 million to $181 million, primarily driven by a lower net loss, excluding the impact of non-cash charges. Cash Flows Used for Investing Activities decreased by $47 million to $114 million, primarily driven by lower capital spending. Cash Flows Used for Financing Activities and Other decreased by $266 million to $31 million, primarily driven by net repayments of long-term borrowings of $278 million in 2018.
For the year, Worldwide Gross Sales for Dolls were $1,724.0 million, flat as reported, and up 2% in constant currency, versus the prior year, driven by growth in Barbie partially offset by a decline in American Girl. Worldwide Gross Sales for Infant, Toddler and Preschool were $1,257.6 million, down 11% as reported, and down 10% in constant currency, driven by declines in Fisher-Price Friends, and Fisher-Price and Thomas & Friends. Worldwide Gross Sales for Vehicles were $1,101.3 million, up 3% as reported, and up 6% in constant currency, driven by growth in Hot Wheels partially offset by a decline in CARS and Jurassic World vehicles. Worldwide Gross Sales for Action Figures, Building Sets and Games were $981.6 million, up 14% as reported, and up 15% in constant currency, driven by Toy Story 4 partially offset by a decline in Jurassic World.
For the fourth quarter, Worldwide Gross Sales for Dolls were $630.1 million, down 6% as reported, and down 5% in constant currency, versus the prior year’s fourth quarter, primarily driven by a decline in American Girl partially offset by growth in Barbie. Worldwide Gross Sales for Infant, Toddler and Preschool were $381.1 million, down 9% as reported and in constant currency, driven by declines in Fisher-Price Friends, and Fisher-Price and Thomas & Friends. Worldwide Gross Sales for Vehicles were $356.9 million, up 1% as reported in constant currency, primarily driven by growth in Hot Wheels partially offset by a decline in CARS vehicles. Worldwide Gross Sales for Action Figures, Building Sets and Games were $297.2 million, up 9% as reported and up 10% in constant currency, primarily driven by Toy Story 4, UNO and MEGA partially offset by a decline in Jurassic World.