Mattel profit declines as Barbie struggles to remain relevant

By IVCPOST Staff Reporter

Jul 17, 2013 08:27 AM EDT

The world's biggest toymaker, Mattel Inc, reported far weaker-than-anticipated proceeds. Its Barbie doll sales slumped again which underscored the iconic brand's struggle to remain relevant.

The company stated that its second-quarter net income plunged 23% to US$73.3 million or 21 cents for every share. This was compared with US$96.2 million or 28 cents for each share last year.

According to Thomson Reuters I/B/E/S, analysts expected profit of 32 cents per share. Its sales increased 1% to US$1.17 billion. The data missed analysts' average estimation of US$1.22 billion.

Barbie sales decreased for four quarters now. It dropped to 12%. The declining sales of Barbie brand was in definite contrast with the corporation's other doll brands for pre-teens. Mattel was also a home to brands like American Girl with sales that rose to 14%. It also made Monster High, Hot Wheels and Fisher-Price.

The gross margin of Mattel was flat. It suffered from higher selling and general expenditures.

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