February 15, 2019
(Reuters) – Mattel Inc said on Friday 2019 gross sales were expected to be flat, with weakness in Thomas & Friends and American Girl offseting comparatively stronger sales of its Barbie and Hot Wheels brands, sending the toymaker’s shares down 14 percent.
The company also forecast a drop in first-quarter gross sales.
The news comes a week after Mattel posted a surprise fourth-quarter profit, as it benefited from a makeover of its Barbie doll.
Mattel also forecast capital expenditures to be roughly in line with 2018 when it spent about $152 million and said it would be increasing strategic investments to about $100 million in 2019.
Shares of the company fell to $14.45 in late trade.
(Reporting by Arjun Panchadar in Bengaluru; Editing by Anil D’Silva)