Mattel (NASDAQ: MAT) reported Q1 EPS of ($0.61), $0.20 worse than the analyst estimate of ($0.41). Revenue for the quarter came in at $594 million versus the consensus estimate of $652.66 million.

Ynon Kreiz, Chairman and CEO, Mattel said: “While the world has been facing the unprecedented health and economic impact of COVID-19, we have been quickly adjusting the way we operate and how we manage the Company. Our top priority has been to protect the health and safety of our people and at the same time mitigate the disruption to our business. I am proud of how our team has embraced uncertainty and change and demonstrated resilience in the face of this challenge.”

“Our work over the past two years to develop a flexible and results-oriented organization is serving us well during this time,” Mr. Kreiz continued. “We remain focused on transforming Mattel into an IP-driven, high-performing toy company and creating long-term shareholder value. Looking beyond the second quarter, with supply chain and retail distribution continuing to improve and markets reopening, we are planning for increased demand for our products in expectation of a much-improved second half and holiday season. We are confident in our ability to navigate through the balance of the year and believe our assets, resources, and capabilities position us well to succeed in the recovery.”

Joseph Euteneuer, CFO, Mattel said: “Our accomplishments over the past two years position us well to respond to changing market conditions. In the first quarter, we delivered significant Gross Margin improvement with our highest first quarter Gross Margin since 2016, despite the COVID-19 disruption. Additionally, the cumulative savings from Structural Simplification, Capital Light, and our additional 2020 actions are expected to exceed $1 billion exiting the year. With our cash on hand and access to our $1.6 billion senior secured revolving credit facilities, we expect to have sufficient liquidity to effectively manage through the disruption and to continue to execute our strategy.”

For the first quarter, Net Sales were down 14% as reported, and down 12% in constant currency, versus the prior year’s first quarter. Gross Sales were down 14% as reported, and down 12% in constant currency. Reported Operating Loss was $149.8 million, compared to a prior year loss of $127.1 million, and Adjusted Operating Loss was $133.0 million, compared to a prior year loss of $96.5 million. Reported Loss Per Share was $0.61, compared to a prior year loss per share of $0.51, and Adjusted Loss Per Share was $0.56, compared to a prior year loss per share of $0.42.

GUIDANCE:

Withdrawing previous 2020 guidance due to uncertainty related to COVID-19.

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