Mattel the toymaker is amidst another tough period and its Barbie doll has not been carrying her weight.
Profits at Mattel plummeted during the second quarter as sales worldwide dropped by 9%. Barbie’s sales aided in the decline, as the doll’s sales dropped over 15%.
The results from the quarter were reported on Thursday and continued a run of disappointment for the iconic doll, as sales have declined over 13% in all of the last three quarters. According to many analysts, consumers might not be running back to the doll any time soon.
The struggles, said analysts, have been attributed to the nature of the industry and not what Mattel has or had not done since the onset of their struggles.
Toys have cycles they run through, said an analyst and often lose their relevance and freshness.
Things will not last forever, especially when it comes to the toy industry, said the analyst.
Though Barbie has endured for over 50 years, the doll is no exceptions. Barbie has been through times of slow sales, but had never gone away.
Girls are moving more and more to different arts and crafts, electronic devices and collectible dolls for entertaining themselves.
Though the effect cannot be fully calculated, even merchandise related to Frozen the Disney film might have taken away some of the market share of Barbie over the last couple of quarters.
Frozen had a November 2013 release date meaning it could have contributed to the entire down period.
Consumers are not weary of dolls in general. Sales of American Girl another Mattel brand were up 6% during the second quarter, which could have been part of the reason for the fall off of Barbie sales.
For the iconic Barbie to earn some share back in the marketplace one analysts says Mattel needs to change things to re-energize the brand.
However, the analyst was quick to say he does not see that happening anytime soon.
Analysts do not feel the fourth quarter that is boosted by holiday sales will have much of a substantial rebound.
Usually the last two quarters of the year hold a truer indication of sales for toys.
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