Monday, November 21, 2011

Mattel Shares Dip as Ad-Spending Cuts into Margins

Mattel (MAT) fell 1.2% in early trading after the toy-maker reported that its margins had slimmed as it spends more on marketing.

Earnings per share of 86 cents met analysts’ expectations. Sales grew 7% as Barbie and other toys showed strong growth. But the company’s gross margin slipped to 47.8% from 51.1%, as advertising and promotional expenses rose 9%.

The company’s cash and equivalents fell to $254.5 million from $960.5 million.

The company also authorized a $500 million buyback plan.

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