The toymaker reported a loss of US$108 million, compared with a US$240.9 million loss in the year-ago period.

Revenues rose 2% to US$860.1 million.

Sales were boosted by action figures and games linked to Toy Story 4, offsetting a 22% decline in sales in the slumping American Girl division that is being revamped.

Sales also fell in infant, toddler and preschool toys due to weakness in Thomas & Friends and in Fisher-Price, where results have been dented by a recall of an infant sleeper linked to more than 30 fatalities.

Mattel estimated a US$30.4 million negative impact on the recall of the Play Sleeper through midyear.

Mattel’s chief executive, Ynon Kreiz, said Mattel is making progress on a “multi-year turnaround strategy” consisting of lower administrative and manufacturing costs, as well the launching of film department that is making a new “Barbie” movie with actress Margot Robbie.

“We continue to execute toward our goal to restore profitability and regain topline growth in the short-to-mid-term, and to capture the full value of our IP in the mid-to-long term,” said Chief Financial Officer Joseph Euteneuer.

Shares rose 3.9% to US$13.00 in after-hours trading.