No. 1 toy company Mattel Inc
The news came a week after top U.S. retailers posted a record rise in monthly same-store sales for March, fueling hopes that the U.S. economy had turned the corner.
Mattel, the maker of Barbie dolls and Hot Wheels cars, introduced a line of action figures based on popular World Wrestling Entertainment
The company, whose rivals include U.S.-based Hasbro
Even though people may have less money to spend, they know their budgets, BMO Capital Markets analyst Gerrick Johnson said. When they have a budget, they ... don't scrimp on the kids. They cut out elsewhere.
Mattel shares, which had nearly doubled in the past 12 months, rose 3.2 percent to $24.50 in premarket trading.
Mattel said its first-quarter net profit was $24.8 million, or 7 cents a share, compared with a year-earlier net loss of $51 million, or 14 cents a share.
Analysts on average were expecting a loss of 3 cents a share, according to Thomson Reuters I/B/E/S.
Net sales rose 12 percent to $880.1 million, boosted by both U.S. and international markets. The analysts' average estimate was $860 million.
While sales increased 5 percent for both Barbie and Fisher-Price brands, they rose 9 percent at Hot Wheels and 6 percent at American Girl.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)