Mattel 2009 Annual Report Download - page 40

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Fisher-Price Brands US gross sales decreased 8% in 2009 as compared to 2008. Within this segment, gross
sales of Core Fisher-Price®products decreased 4% and gross sales of Fisher-Price®Friends products decreased
18%. Fisher-Price Brands US segment income increased 44% to $231.9 million in 2009 from $161.0 million in
2008, primarily driven by higher gross profit, lower other selling and administrative expenses, and lower
advertising and promotion expenses, partially offset by lower sales volume.
American Girl Brands gross sales were flat during 2009 as compared to 2008, driven primarily by the
November 2008 openings of the American Girl Boutique and Bistro®in Boston and Minneapolis, offset by
softness resulting primarily from a difficult comparison to strong entertainment-related sales in 2008. American
Girl Brands segment operating income increased 19% to $103.4 million in 2009 from $86.6 million in 2008,
primarily driven by higher gross profit, lower other selling and administrative expenses, and lower advertising
and promotion expenses.
International Segment
The following table provides a summary of percentage changes in gross sales within the International
segment in 2009 versus 2008:
Non-US Regions:
% Change in
Gross Sales
Impact of Change in
Currency Rates
(in % pts)
Total International ................................................. –13 –4
Europe ...................................................... –15 –4
Latin America ................................................ –12 –6
Asia Pacific .................................................. –7 –2
Other ....................................................... –11 –1
International gross sales decreased 13% in 2009 as compared to 2008, including unfavorable changes in
currency exchange rates of 4 percentage points. Gross sales of Mattel Girls & Boys Brands decreased 15%,
including unfavorable change in currency exchange rates of 4 percentage points. Gross sales of Barbie®
decreased 6%, including unfavorable changes in currency exchange rates of 4 percentage points. Gross sales of
Other Girls Brands decreased 26%, including unfavorable changes in currency exchange rates of 3 percentage
points, driven primarily by sales declines in High School Musical®products. Gross sales of Wheels products
decreased 13%, including unfavorable changes in currency exchange rates of 5 percentage points driven
primarily by sales declines in Speed Racer®and Tyco R/C®products. Gross sales of Entertainment products
decreased by 19%, including unfavorable changes in currency exchange rates of 4 percentage points, driven
primarily by lower sales of products tied to last year’s three key summer movie properties: Batman®, Speed
Racer®, and Kung Fu Panda®, along with CARS™ products, and Radica®products, partially offset by sales of
products tied to Toy Story®and Toy Story®2. Fisher-Price Brands gross sales decreased 9%, including
unfavorable changes in currency exchange rates of 4 percentage points. Gross sales of Core Fisher-Price®
products decreased 9%, including unfavorable change in currency exchange rates of 4 percentage points and
gross sales of Fisher-Price®Friends products decreased 5%, with no impact from changes in currency exchange
rates. International segment income increased 18% to $422.5 million in 2009 from $357.6 million in 2008,
primarily driven by higher gross margin, lower advertising and promotion expenses, and lower other selling and
administrative expenses, partially offset by lower sales volume.
2008 Compared to 2007
Consolidated Results
Net sales for 2008 were $5.92 billion, a 1% decrease as compared to $5.97 billion in 2007, with no impact
from changes in currency exchange rates. Net income for 2008 was $379.6 million, or $1.04 per diluted share, as
compared to net income of $600.0 million, or $1.53 per diluted share, for 2007. Net income for 2007 was
30