Mattel Inc.’s sales fell 3% in the fourth quarter, as growth of Barbie dolls, Hot Wheels cars and "Toy Story 4" toys were offset by ongoing declines for Fisher-Price and American Girl products.
The company has been relying on the growth of its two largest brands, Barbie and Hot Wheels, to blunt an extended slump in other parts of its portfolio.
That trend continued into the latest holiday season, where toy companies contended with a shorter shopping period between Thanksgiving and Christmas and a retail environment adjusting to its second year without Toys "R" Us Inc.
Chief Executive Ynon Kreiz said Mattel ended the year with flat revenue after five straight years of declines and it increased its market share in the toy industry, where overall sales fell 4% last year, according to research firm NPD Group Inc.
"2019 was an inflection point in the turnaround," he said in an interview Thursday.
Mattel joined other toy companies, including Funko Inc. and Spin Master Inc., that have reported disappointing holiday sales. Meanwhile, Hasbro Inc., which makes Monopoly board games and Nerf blasters, on Tuesday said sales rose 3% in the fourth quarter, helped by toys tied to Walt Disney Co. properties like Frozen and Star Wars.
Mr. Kreiz said that it is too early to tell what the broader impact would be from the coronavirus outbreak, which has caused over 1,000 deaths in China, a key hub for manufacturing toys. He said Mattel has contingency plans and can manufacture products in other countries to mitigate the impact.
"Our job is to design a company that can withstand these challenges and unforeseen events," Mr. Kreiz said. "We have the right resources, people and structure to address any issue that will come our way."
Mattel posted a slight profit in the fourth-quarter, or break-even on a per-share basis, compared with a profit of $9.6 million, or 3 cents a share, a year earlier.
Adjusted for items like severance and restructuring expenses, earnings were 11 cents a share. Analysts polled by FactSet were expecting adjusted earnings of 1 cent a share.
Revenue was $1.47 billion, compared with $1.52 billion a year earlier. Analysts were expecting revenue of about $1.5 billion.
Sales fell 3% in North America but were flat in the International division.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
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