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 has yet to gain traction.
Profit was 71 cents a share, excluding some items, the El Segundo, California-based company said in a statement Thursday. That trailed analysts' 79-cent average estimate. Revenue fell 11 per cent to $1.79-billion, missing analysts' $1.89-billion average projection.
Mattel has been struggling to revive sales of Barbie, its largest brand, amid increased competition from other dolls and girl-oriented toys such as the Lego Friends line. Barbie's sales fell 14 per cent to $302-million in the quarter. Excluding changes in currency exchange rates, the decline would have been 4 per cent. The company, which replaced Chief Executive Officer Bryan Stockton with board member Christopher Sinclair earlier this year, also will lose the licenses for Disney Princess and Frozen to rival Hasbro Inc. next year, leaving huge holes in its lineup.
The stock fell 1.7 per cent to $22.14 at 4:20 p.m. in late trading in New York. The shares had declined 27 per cent this year through Thursday's close, compared with a drop of 1.7 per cent for the Standard & Poor's 500 Index.