Market Commentary and Intraday News
On the Call: Mattel CEO Bryan Stockton
221 days ago
By The Associated Press
Mattel said Tuesday that its net income rose 22 percent in the third quarter on cost cuts and higher sales of toys such as Monster High dolls and Fisher Price.
Here CEO Bryan Stockton discusses global toy industry sales.
QUESTION: You are outperforming, but can you comment on why industry weakness is pronounced?
RESPONSE (CEO Stockton): "We are still very positive about the toy industry as we look at data sources, for example, like Euromonitor. They continue to forecast a toy category growth globally of, I think, it is around 6 percent.
"The numbers in the U.S. have been a little weaker than probably anyone would like this year, but as you recall the U.S. is only about one-third of the global toy business. When you peel the layers of the onion back on the U.S. business, the softness is really in categories where you could argue there has not been as much innovation as there had been in others. For example, the categories in which we compete primarily are outperforming the industry on average.
"So we are still positive that when there is integration, this industry can grow particularly here in the U.S. As you look at Europe, frankly, we are quite pleased with the toy business in Europe. It is down only about 1 percent and Europe, as you know, has a very challenging economic environment."
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