Mattel 2014 Annual Report Download - page 43

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Gross sales for the North America segment were $3.18 billion in 2013, down $149.0 million or 4%, as
compared to $3.33 billion in 2012, with no impact from changes in currency exchange rates. The decrease in the
North America segment gross sales was due to lower sales of Barbie, Core Fisher-Price, and Wheels products,
partially offset by higher sales of Other Girls products. The 12% decrease in Barbie gross sales reflected product
innovation not being strong enough to drive growth, increased competition within the doll category, along with
lower effectiveness of in-store, commercial, and promotional activities. The 11% decrease in Core Fisher-Price
gross sales reflected product innovation not being strong enough to drive growth, along with lower effectiveness
of in-store, commercial, and promotional activities. Of the 11% decrease in Wheels gross sales, 8% was due to
lower sales of radio-controlled vehicles and Matchbox products, and 3% was due to lower sales of Hot Wheels
products. Of the 19% increase in Other Girls gross sales, 11% was due to higher sales of Monster High products,
and 7% was due to the initial launch of the Ever After High product line. Cost of sales decreased 4% in 2013,
consistent with the 4% decrease in net sales, primarily due to lower product and other costs. Gross margins
decreased slightly as a result of higher input costs partially offset by price increases, which were partially offset
by Operational Excellence 3.0 savings.
North America segment income decreased by 11% to $723.8 million in 2013, as compared to $810.3 million
in 2012, due to lower gross profit and higher other selling and administrative expenses.
International Segment
The following table provides a summary of percentage changes in gross sales within the International
segment in 2013 versus 2012:
% Change in
Gross Sales
Impact of Change in
Currency Rates
(in % pts)
Total International Segment ......................................... 5 –1
Europe ...................................................... 7 1
Latin America ................................................ — –4
Asia Pacific .................................................. 6 –5
The following table provides a summary of Mattel’s gross sales by brand for the International segment for
2013 and 2012:
For the Year
% Change2013 2012
(In millions, except percentage
information)
Mattel Girls & Boys Brands:
Barbie .......................................................... $ 744.2 $ 752.7 –1%
Other Girls ...................................................... 722.8 557.7 30%
Wheels ......................................................... 395.7 419.2 –6%
Entertainment .................................................... 588.5 553.0 6%
2,451.2 2,282.6 7%
Fisher-Price Brands:
Core Fisher-Price ................................................. 558.2 586.0 –5%
Fisher-Price Friends ............................................... 246.8 239.2 3%
Other Fisher-Price ................................................. 16.8 17.8 –5%
821.8 843.0 –3%
Other .......................................................... 4.8 0.5
Total Gross Sales ............................................. $3,277.8 $3,126.1 5%
37