Mattel (NASDAQ: MAT) reported Q2 EPS of ($0.56), $0.26 worse than the analyst estimate of ($0.30). Revenue for the quarter came in at $840.7 million versus the consensus estimate of $851.82 million.

Company announced a reduction of over 2,200 positions, representing 22% of global non-manufacturing workforce, as well as planned sale of manufacturing sites in Mexico.

"Mattel is a company with great potential. We see a lot of opportunities, but there has been a big discrepancy between our financial performance over the last few years and where the company should be," said Ynon Kreiz, Chairman and CEO of Mattel. "While the industry is evolving, the toy market continues to grow, and we should be able to reverse our own trends given our strong standing and the quality of our assets. With that said, we are in a turnaround and as expected, had a challenging second quarter driven primarily by the Toys "R" Us liquidation. At the same time, we saw continued strong performance by Barbie and Hot Wheels, and we made substantial progress on our Structural Simplification program to restore profitability and improve productivity in the near-term."

Mr. Kreiz continued: "Our goal is to transform Mattel into an IP-driven, high performing toy company and I\'m confident we have the right team, the right assets and the right strategy in place to achieve this and enhance long-term value for our shareholders."

Joseph Euteneuer, CFO of Mattel added: "We are pleased to report that our two-year $650 million Structural Simplification program is on-track. We are ahead of schedule with our SG&A savings actions and, as a result, expect full year adjusted SG&A to be better than the outlook we provided earlier this year. While gross margin was challenged in the first half, we expect a significant sequential improvement in gross margin in the second half of the year."

For the second quarter of 2018, net sales were down 14% as reported and in constant currency, versus the prior year's second quarter. Gross sales were down 11% as reported and in constant currency, reflecting a 10% impact from the Toys "R" Us liquidation. Reported operating loss was $189.2 million, and adjusted operating loss was $141.3 million. Reported loss per share was $0.70 and adjusted loss per share was $0.56."

For earnings history and earnings-related data on Mattel (MAT) click here.