Mattel 2015 Annual Report Download - page 31

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27
American Girl Segment
The following table provides a summary of Mattel’s gross sales by brand for the American Girl segment for 2015 and
2014:
For the Year % Change as
Reported
Currency
Exchange
Rate Impact
% Change in
Constant
Currency
2015 2014
(In millions, except percentage information)
American Girl Segment:
American Girl Brands $ 572.0 $ 618.7 -8%-1%-7%
Other Brands 24.2 26.6 -9%-11%2%
Total American Girl Segment $ 596.2 $ 645.3 -8%-1%-7%
Gross sales for the American Girl segment were $596.2 million in 2015, a decrease of $49.1 million or 8% as reported,
and 7% in constant currency, compared to 2014. Of the 7% decrease in American Girl Brands gross sales in constant currency,
4% was due to lower sales of the 2015 Girl of the Year, Grace Thomas™, and 4% was due to lower sales of Truly Me products.
Cost of sales decreased 6% in 2015, as compared to a 9% decrease in net sales, primarily due to lower product and other costs.
Gross margins decreased due to higher product-related costs, partially offset by Funding Our Future savings.
American Girl segment income decreased 38% to $69.9 million in 2015, as compared to $113.6 million in 2014,
primarily due to lower gross profit.
2014 Compared to 2013
Consolidated Results
Net sales for 2014 were $6.02 billion, a 7% decrease as reported, and a 5% decrease in constant currency, as compared to
$6.48 billion in 2013. Net income for 2014 was $498.9 million, or $1.45 per diluted share, as compared to net income of $903.9
million, or $2.58 per diluted share, in 2013. Earnings per share for 2014 was negatively impacted by lower sales volume and
lower gross profit.
The following table provides a summary of Mattel’s consolidated results for 2014 and 2013 (in millions, except
percentage and basis point information):
For the Year Year/Year
Change
2014 2013
Amount
% of Net
Sales Amount
% of Net
Sales %
Basis Points
of Net Sales
Net sales $ 6,023.8 100.0% $ 6,484.9 100.0% -7%—
Gross profit $ 3,001.0 49.8% $ 3,478.9 53.6% -14% –380
Advertising and promotion expenses 733.2 12.2 750.2 11.6 -2%60
Other selling and administrative
expenses 1,614.1 26.8 1,560.6 24.1 3% 270
Operating income 653.7 10.9 1,168.1 18.0 -44% –710
Interest expense 79.3 1.3 78.5 1.2 1% 10
Interest (income) (7.4) -0.1 (5.6)-0.1 33% —
Other non-operating (income), net (5.1) (3.9)
Income before income taxes $ 586.9 9.7% $ 1,099.1 16.9% -47% –720
Sales
Net sales for 2014 were $6.02 billion, a 7% decrease as reported, and a 5% decrease in constant currency, as compared to
$6.48 billion in 2013.