Mattel Inc.'s third-quarter earnings fell 33% as the toy maker booked its eighth straight quarter of falling sales, including another big drop for its iconic Barbie doll.
The results were dragged down by a stronger U.S. dollar, but also reflect ongoing struggles at the world's largest toy maker by sales as it embarks on a turnaround. 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.
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Mr. Sinclair is leaning on a top lieutenant, Richard Dickson, to reinvigorate the creative team and improve marketing, and has also shaken up the top management team. 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.
A major problem has been Barbie, one of Mattel's most profitable brands that has fallen on tough times as young girls have gravitated to other dolls, like those based on the hit Disney movie, Frozen. Barbie's overall sales fell 14% globally, its eighth straight quarter of a double-digit drop.
Mattel reported a profit of $223.8 million, or 66 cents a share, down from $331.8 million, or 97 cents, a year earlier. Excluding items such as acquisition costs related to its Mega Brands acquisition and severance expenses, earnings fell to 71 cents from 98 cents.Overall revenue fell 11% to $1.79 billion, or 4% excluding currency effects.
Analysts polled by Thomson Reuters had forecast earnings of 80 cents on $1.89 billion in revenue.
By Paul Ziobro