Short answer
Mattel Inc (MAT) filed its fiscal 2017 10-K annual report with the SEC on Feb 27, 2018. It reported revenue of $4.9B (−10.5% year over year) and net income of −$1.1B.
- Top risk flagged: EU General Data Protection Regulation: May 2018 effective date, substantial penalties for non-compliance
FY2017 key financial metrics · XBRL
- Revenue
- $4.9B
- −10.5% YoY
- Net income
- −$1.1B
- −431.4% YoY
- Operating margin
- -7.0%
- −16.5 pp YoY
- Gross margin
- 37.3%
- −9.5 pp YoY
- EPS (diluted)
- −$3.07
- −433.7% YoY
- ROE
- -83.8%
- −97.0 pp YoY
- Operating cash flow
- −$28M
- −104.6% YoY
Source: XBRL data from the Mattel Inc (MAT) FY2017 10-K on SEC EDGAR. USD.
Mattel Inc FY2017 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global toy model: branded products sold through retailers, wholesalers, proprietary stores, websites, and direct-to-consumer channels
- Five-pillar turnaround strategy emphasizing connected 360-degree play systems, digital-first emerging markets, innovation, operational transformation, and culture
- New or refreshed offerings: Hot Wheels City, Augmoto augmented reality racing, MECARD, STEM-based Luciana Vega, and returning Polly Pocket
- Product design and development spending $225.2 million in 2017, up from $215.3 million in 2016
- Toys “R” Us Chapter 11 triggered approximately $43 million North America sales reversal and reduced second-half shipments
Management Discussion & Analysis
- Revenue $4.88B, down 11% YoY from $5.46B; gross sales $5.51B, down 9%
- Gross margin 37.3% vs 46.8%; operating margin -7.0% vs 9.5%
- Best segment International gross sales $2.50B, up 2%; worst North America gross sales $2.54B, down 16%
- Operating cash flow -$27.6M; dividends $312.0M; no share repurchases; capex higher, amount not disclosed
- Outlook: $650M net cost savings targeted by 2020; risks included Toys “R” Us bankruptcy, customer concentration, and International goodwill impairment at 1.08x carrying value
Risk Factors
- EU General Data Protection Regulation: May 2018 effective date, substantial penalties for non-compliance
- International exposure: 42% of 2017 consolidated net sales, with currency-transfer restrictions affecting foreign results
- Supply chain concentration: shrinking pool of Chinese toy manufacturers amid rising costs, credit constraints, and labor shortages
- Digital disruption: faster product cycles and data-security risks in video games, consumer electronics, and social media
- Customer concentration: Toys “R” Us bankruptcy, representing 8% of 2017 net sales and 11% in 2016
Generated from the filing text; verify against the original. How to read a 10-K
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