Mattel slammed by Barbie sales drop

Mattel slammed by Barbie sales drop

Sales of the iconic blonde-haired doll have dropped by double digits for four consecutive quarters.

Toymaker Mattel revealed Thursday that Barbie sales declined a whopping 21 percent in this year’s third quarter compared to last year. That makes four consecutive quarters where sales of the iconic blonde-haired doll have dropped by double digits, and nine straight quarters of falling sales generally.

“The Barbie brand is not as strong as it used to be and a generic fashion doll will suffice,” BMO Capital’s Gerrick Johnson told the Wall Street Journal.

Indeed, the Journal reports that big-box retailers like Target and Walmart have been steadily ceding shelf space previously allocated to Barbie to lesser known dolls, like the Funville Sparkle Girl, a brand sold only at Walmart.

Unfortunately for the toymaker, Mattel’s troubles do not end with Barbie. Earlier this year the company lost the distinction of the title “world’s largest toymaker” to Lego, who saw surging sales in the wake of the Lego movie. Mattel said Thursday that its overall profits fell 22 percent to $331.8 million in the third quarter, while revenue declined 8 percent.

To make matters worse, its few bright spots are not sustainable. Although Mattel saw strong sales from its line of Disney toys, especially those tied to the Frozen movie, its contract with Disney is set to expire in 2016, when rival toymaker Hasbro will takeover.

Still, while certainly down, Mattel is by no means out. It may be losing the Disney license, but the company has actively sought other film licenses hopefully to offset the loss. The Washington Post reports that Mattel’s Hot Wheels brand will release a line of Star Wars cars later this year, and Mattel also has partnerships with Warner Bros., which plans to release 10 new films based on DC Comics characters.

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