Shares of Mattel (MAT, Financial) fell after reporting second quarter adjusted loss per share of 56 cents on revenue of $840.7 million, a 13.7% year-over-year decline. The company missed earnings estimates by 26 cents and revenue estimations by $11.12 million.
In the trimester, net sales in the North America segment decreased by 14% when compared to the prior year's second quarter. Gross sales in the North America segment decreased by 13%, primarily driven by the impact of the Toys "R" Us liquidation, lower sales of CARS™, Fisher-Price® and Thomas & Friends®, and Toy Box owned brands, partially offset by initial sales of Jurassic World™ and higher sales of Hot Wheels.
Internationally, net sales decreased by 10% versus the prior year's second quarter. Gross sales in the International segment decreased by 5% due to lower sales of CARS and Fisher-Price and Thomas & Friends and the impact of the Toys "R" Us liquidation, partially offset by initial sales of Jurassic World™ and higher sales of Barbie and Hot Wheels. China was the principal market that suffered lower sales.
Reported gross margin decreased to 30.1% in 2018 from 41.0% in 2017, primarily driven by higher materials costs, higher obsolescence and unfavorable product mix.
Shares of Mohawk Industries Inc. (MHK, Financial) fell more than 15% after reporting second quarter earnings per share of $3.51 on revenue of $2.58 billion. The company fell short of earnings estimates by 39 cents and of revenue estimations by $20 million.
For the first semester, net earnings and earnings per share were $405 million and $5.41, respectively. Earnings per share were $6.52, an increase over the 2017 six-month period. Also, net sales reached $5.0 billion, an increase of 7% versus the prior year.
Shares of Ford Motor Co. (F, Financial) also fell after reporting second quarter earnings per share of 27 cents on revenue of $38.9 billion. The company fell short of earnings estimates by 3 cents but beat revenue estimations by $3.36 billion.
The company now expects full-year earnings per share between $1.30 and $1.50, lower than the previously forecast $1.45 to $1.70 range and $1.52 consensus estimates.
Disclosure: The author holds no position in any stocks mentioned.
