Investing.com -- Shares in Mattel Inc (NASDAQ:MAT) soared more than 6% in after-hours trading after one of the world's largest toymakers posted better than expected earnings for the first quarter.
Hampered by a downturn in its iconic Barbie brand over the last several years, Mattel braced for a weak earnings season for the first three months of the year. While Barbie sales fell again during the period, Mattel blamed the losses on weak sales overseas amid a weak euro. Overall, the company reported an 8% increase in sales in the U.S. but a 14% decrease in sales outside the country.
On a currency neutral basis when exchange rates were adjusted for 2014 levels, sales rose 5% to $922.7 million for the quarter. Analysts had projected a loss of 0.09 per share on $901.3 million in revenues. Without the adjustment, company sales fell approximately 2.5% and 0.17 a share.
“In the first quarter, we took a number of steps to implement a rapid turnaround at Mattel,” Mattel Chairman and CEO Christopher Sinclair said in a statement. “We are already benefitting from better decision-making, alignment and enhanced accountability. And we’ve begun to refocus our culture on creativity, innovation and improving our speed to market. While we still have a lot of work to do, we’re starting to see progress with our core brands like Barbie and Fisher-Price, and I am confident we are making the changes necessary to perform better in the future.”
Earlier this month, Sinclair was promoted to CEO after spending the first three months of the year in an interim role following the resignation of predecessor Bryan Stockton.
Shares in Mattel rose 1.67 or 6.67% to 26.94 in after-hours trading.