By Yasin Ebrahim
Investing.com -- Mattel reported Wednesday fourth-quarter results that missed analysts' forecasts as a weaker economic backdrop hurt sales during the holiday quarter in its core North America domestic market.
Mattel Inc (NASDAQ:MAT) shares slumped 9% in after-hours trade following the report.
Mattel announced earnings per share of $0.18 on revenue of $1.4B. Analysts polled by Investing.com anticipated EPS of $0.29 on revenue of $1.69B.
Gross billings in the North America business, which makes nearly half of revenue, fell 25%, as demand for toys including dolls and action figures waned. Billings in its International segment fell 19%, the company said.
As well as weaker revenue, the miss on the bottom line was driven by a slide in margins to 43.0%, from 49.3% in the prior year, as promotional activity to trim bloated inventory and higher input costs weighed.
Looking ahead to 2023, the company forecast adjusted EPS in a range of $1.10 to $1.20 and gross margin of about 47%.
The company touted share repurchases in 2023 amid efforts to strengthen its balance sheet during the year, and an outlook for increased free cash flow.