Shares of Mattel fell as much as 8.6 percent after the market closed on Thursday, as it reported first-quarter revenue and earnings that missed Wall Street’s expectations.
The toy company posted a loss of 32 cents per share, excluding items. That was worse than the expected loss of 17 cents per share, according to a consensus of analysts polled by Thomson Reuters.
Mattel reported net revenue of $736 million for the quarter, below estimates of $801 million.
A year ago, Mattel lost 13 cents a share and had revenue of $869.4 million
“Our Q1 results were below our expectations due to the retail inventory overhang coming out of the holiday period, but we remain encouraged by strong performance at retail for our key core brands, including Barbie, Hot Wheels and FisherPrice as well as sustained momentum in high-growth markets like China,” Margo Georgiadis, CEO of Mattel, said in a statement Thursday.
Mattel had forecasted in its fourth-quarter earnings report that year-end inventories would negatively impact 2017 revenue by less than 2 percent.
Shares of the company are down more than 23 percent over the past year.
Georgiadis said that the company is confident that it has “worked through the majority of this overhang” and looks forward to the launch of its line of toys tied to Disney‘s “Cars” franchise.