EL SEGUNDO (dpa-AFX) - Mattel Inc. (MAT) Tuesday reported a loss for the first-quarter that widened from a year ago period, as net sales dropped 14%. Moving ahead, the company also withdrew its full year outlook, sending its shares down 7% in extended trading session.
Mattel's first-quarter loss widened to $210.7 million or $0.61 per share from $176.3 million or $0.51 per share last year. Adjusted loss per share was $0.56, compared to a prior year loss per share of $0.42.
Net sales for the quarter dropped 14% to $594.1 million from $689.2 million last year.
Analysts polled by Thomson Reuters estimated loss of $0.41 per share on revenues of $652.66 million. Analysts' estimates typically exclude special items.
Looking forward, Mattel said it is withdrawing its 2020 guidance, 'given the high level of uncertainty around the impact of COVID-19.'
Further, Mattel said has planned a 4% reduction in its non-manufacturing workforce. Mattel expects to incur severance and restructuring charges of about $13 million, consisting solely of cash expenditures for employee termination and severance costs, starting in the second quarter of 2020 through the end of 2020. Mattel expects to realize around $40 million of run-rate cost savings exiting 2020.
MAT closed Tuesday's trading at $8.60, up $0.02 or 0.29%, on the NYSE. The stock, however, slipped $0.61 or 7.15% in the after-hours trade.
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