Revenue during the quarter dropped 15.39 percent to $735.60 million from $869.40 million in the previous year period. Gross margin for the quarter contracted 681 basis points over the previous year period to 37.90 percent. Operating margin for the quarter stood at negative 17.26 percent as compared to a negative 5.65 percent for the previous year period.

Operating loss for the quarter was $127 million, compared with an operating loss of $49.10 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $122.10 million compared to operating loss of $38.60 million in prior year period.

"Our Q1 results were below our expectations due to the retail inventory overhang coming out of the holiday period, but we remain encouraged by strong performance at retail for our key core brands, including Barbie, Hot Wheels and Fisher-Price as well as sustained momentum in high-growth markets like China," said Margo Georgiadis, chief executive officer of Mattel. "We are confident we have worked through the majority of this overhang and look forward to a strong launch of Disneys Cars 3 theatrical release in the second quarter. While we have a lot of work to do to successfully position Mattel for the future, we see a clear runway to improving growth and profitability over time."

The company has spent $45 million cash to meet investing activities during the quarter as against cash outgo of $55 million in the last year period.

The company has spent $133 million cash to carry out financing activities during the quarter as against cash outgo of $149 million in the last year period.

Cash and cash equivalents stood at $381.90 million as on Mar. 31, 2017, down 36.32 percent or $217.80 million from $599.70 million on Mar. 31, 2016.

Debt moves up
Mattel, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,315 million as on Mar. 31, 2017, up 11.01 percent or $229.60 million from $2,085.40 million on Mar. 31, 2016.