Mattel 2011 Annual Report Download - page 42

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Fisher-Price Brands US
Fisher-Price Brands US gross sales were $1.29 billion in 2011, down $58.9 million or 4%, as compared to
$1.35 billion in 2010. Fisher-Price US gross sales were relatively flat with 2010, excluding sales related to the
Sesame Street®license in 2010. Within this segment, gross sales of Core Fisher-Price®products increased 2%
and gross sales of Fisher-Price®Friends products decreased 26%, driven primarily by the discontinuation of the
Sesame Street®license. Cost of sales decreased by 2% in 2011, as compared to a 5% decrease in net sales, but
increased as a percentage of net sales primarily due to higher product costs. Gross margins decreased primarily
due to higher product costs, partially offset by price increases.
Fisher-Price Brands US segment income decreased 27% to $161.7 million in 2011 from $222.0 million in
2010, driven primarily by lower net sales, lower gross margins, and higher other selling and administrative
expenses.
American Girl Brands
American Girl Brands gross sales were $510.9 million in 2011, up $24.3 million or 5%, as compared to
$486.6 million in 2010, driven primarily by sales from the American Girl®virtual world and Kanani®, the 2011
Girl of the Year®doll, and the benefit of two new American Girl®stores in McLean, Virginia and Lynwood,
Washington, which opened in June 2011 and July 2011, respectively. Cost of sales increased by 5% in 2011, and
net sales increased by 5%, which resulted in relatively flat gross margins.
American Girl Brands segment operating income increased to $113.1 million in 2011 from $112.9 million in
2010, driven primarily by higher net sales, partially offset by higher other selling and administrative expenses
from retail expansion and higher advertising and promotion expenses.
International Segment
The following table provides a summary of percentage changes in gross sales within the International
segment in 2011 versus 2010:
Non-US Regions:
% Change in
Gross Sales
Impact of Change in
Currency Rates
(in % pts)
Total International ................................................. 12 3
Europe ...................................................... 10 3
Latin America ................................................ 14 1
Asia Pacific .................................................. 15 5
Other ....................................................... 8 2
International gross sales were $3.26 billion in 2011, up $339.6 million or 12%, as compared to $2.92 billion
in 2010, with favorable changes in currency exchange rates of 3 percentage points. Gross sales of Mattel Girls &
Boys Brands increased 17%, with favorable changes in currency exchange rates of 3 percentage points. Gross
sales of Barbie®increased 14%, with favorable changes in currency exchange rates of 2 percentage points. Gross
sales of Other Girls Brands increased 31%, with favorable changes in currency exchange rates of 2 percentage
points, driven primarily by higher sales of Monster High®and Disney Princess®products, partially offset by
lower sales of Polly Pocket®and Little Mommy®products. Gross sales of Wheels products increased 9%, with
favorable changes in currency exchange rates of 2 percentage points, driven primarily by higher sales of
Hot Wheels®products. Gross sales of Entertainment products increased by 18%, with favorable changes in
currency exchange rates of 4 percentage points, driven primarily by higher sales of CARS 2®products, partially
offset by lower sales of Toy Story®3 products. Fisher-Price Brands gross sales were flat with 2010, with
favorable changes in currency exchange rates of 2 percentage points. Gross sales of Core Fisher-Price®products
increased 3%, with favorable changes in currency exchange rates of 2 percentage points. Gross sales of Fisher-
Price®Friends products decreased 10%, with favorable changes in currency exchange rates of 1 percentage
point, driven primarily by the discontinuation of the Sesame Street®license. Cost of sales increased by 13% in
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