Weak Barbie sales hit Mattel results

Mattel Inc posted third-quarter profit that trailed analysts’ estimates as Barbie sales continued their long decline, a sign that the turnaround plan at the world’s largest toymaker hasn’t gained enough traction.

Sales of Barbie fell 4 percent on constant currency and 14 percent on a reported basis in the three months ended September 30. Revenue also hurts from worldwide marketplaces. Christopher Sinclair, Mattel’s chief executive since April, has been trying to boost morale at a company where the creative culture has struggled to come up with hit products in recent years and has also bungled basic retail execution during the holidays.

The company said its net income shrank to $223.8 million, or 66 cents per share. Despite another down quarter, Mr. Sinclair said the results “were broadly in line with our expectations at this stage of our turnaround” and that the company is “comfortable” with the full year outlook.

The company has cut more costs than expected and now plans to reduce expenses by US$300 million by the end of next year, the high end of its projections, Sinclair said.

In 2014, smaller rival toy maker, Hasbro, won the license to make Walt Disney’s Disney Princess dolls, including those based on the movie “Frozen”.

Hasbro will start selling the toys in January.

Shares of Mattel Inc. lost 82 cents, or 3.6 percent, to $21.71 in aftermarket trading. Revenue fell 11 per cent to US$1.79 billion (RM7.357 billion), missing analysts’ US$1.89 billion average projection.

Shares of Mattel have fallen 27 percent in 2015, closing at $22.53 Thursday.