Mattel 2001 Annual Report Download - page 3

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2001 presented substantial obstacles for
our company. Global economies softened;
the September 11th terrorist attacks eroded
U.S. consumer confidence; and as a result,
several important U.S. retailers canceled
holiday reorders as they intensified their
focus on inventory management in light of
uncertain consumer spending prospects.
As a result, despite reaching record levels,
Mattel’s three percent worldwide net rev-
enue growth for the year was at the low end
of our expectations. A precipitous eight
percent decline in U.S. shipments during
the fourth quarter brought full-year gross
revenues down one percent in the U.S.,
the world’s largest toy market. Offsetting
weak U.S. sales, our international gross
revenues grew 10 percent for the year and
we have now experienced six consecutive
quarters of growth internationally. A turn-
around in our European business, which
grew 13 percent for the year, led the
international performance. Our business
also grew strongly in Latin America
(20 percent), Canada (10 percent) and
Australia/New Zealand (3 percent).
In last year’s letter to shareholders, I wrote
that one of our key priorities for 2001 was
to strengthen core brand momentum in
the U.S. and abroad. And we did just that.
Consumer demand for our brands grew
around the world as we gained market
share in virtually every country where
we sell our products. In the U.S., despite
weaker-than-expect-
ed shipments to
retailers, all of our
major brands
showed strength
with consumers
and posted sales
increases at retail.
According to NPD industry data for toy
sales at the consumer level, we gained
DESPITE THE SIGNIFICANT CHALLENGES WE FACED DURING 2001, MATTEL HAD A
SUCCESSFUL YEAR AND IS POISED TO CONTINUE IMPROVING ITS PERFORMANCE
IN THE YEARS AHEAD.
To our
shareholders
1