Short answer
Mattel Inc (MAT) filed its fiscal 2018 10-K annual report with the SEC on Feb 22, 2019. It reported revenue of $4.5B (−7.6% year over year) and net income of −$531M.
- Top risk flagged: EU General Data Protection Regulation: May 2018 effective date increased compliance costs and breach penalties for Mattel’s digital products
FY2018 key financial metrics · XBRL
- Revenue
- $4.5B
- −7.6% YoY
- Net income
- −$531M
- +49.6% YoY
- Operating margin
- -5.2%
- +1.8 pp YoY
- Gross margin
- 39.8%
- +2.5 pp YoY
- EPS (diluted)
- −$1.54
- +49.8% YoY
- ROE
- -79.3%
- +4.5 pp YoY
- Operating cash flow
- −$27M
- +1.1% YoY
Source: XBRL data from the Mattel Inc (MAT) FY2018 10-K on SEC EDGAR. USD.
Mattel Inc FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global children’s entertainment company monetizing owned and licensed IP through toys, content, gaming, consumer products, and direct retail
- Strategic transformation toward IP-driven growth, franchise management, and expanded online retail and e-commerce capabilities
- 2019 pipeline emphasized Barbie 60th anniversary, Hot Wheels Monster Trucks, Nintendo Mario Kart, BTS, Toy Story 4, and Detective Pikachu
- Advertising and promotion expenses fell to $526.4 million from $642.3 million, while declining from 13.2% to 11.7% of net sales
- Walmart and Target represented approximately 34% of 2018 worldwide net sales, replacing Toys “R” Us as the disclosed major-customer concentration
Management Discussion & Analysis
- Net sales $4.51B, down 8% YoY from $4.88B, including 6% impact from Toys “R” Us liquidation
- Gross margin 39.8% vs 37.3%; operating margin -5.2% vs -7.0%
- Best segment North America: income $221.3M vs $98.5M; worst American Girl: sales $341.2M, down 28%, loss $17.5M
- Operating cash flow use $27.3M; investing cash flow use $160.8M, with lower capital spending
- No 2018 buybacks or dividends; emerging risks included Toys “R” Us exposure, credit downgrades, and International goodwill at 1.24x carrying value
Risk Factors
- EU General Data Protection Regulation: May 2018 effective date increased compliance costs and breach penalties for Mattel’s digital products
- U.S.-China tariff escalation: increased tariffs threatened Mattel’s Asia-based manufacturing and U.S. toy imports
- China manufacturing concentration: political instability, disease, port delays, and supplier disruptions could impair seasonal production
- Walmart and Target concentration: approximately 34% of 2018 net sales exposed to reduced purchases or private-label competition
- Debt burden: $2.85 billion indebtedness, with variable-rate revolver exposure and higher refinancing costs after credit-rating declines
Generated from the filing text; verify against the original. How to read a 10-K
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