Mattel's new lineup comes as the toy maker has benefited from sales of merchandise tied to the film Toy Story 3, and resilience in its iconic Barbie dolls. However, its Fisher-Price younger-kids division was slumping even before a recent toy recall and its Hot Wheels and Matchbox car categories have lagged.
The toy companyt’s signature Barbie brand saw a 12% bump in sales during the quarter, its first growth in two years. The Hot Wheels brand also saw a 16% gain in sales revenue, and even though the American Girl brands remained flat for the year and the quarter, Mattel was satisfied with growth in two of its most popular brands.
Mattel and rival toy maker Hasbro are coming off the worst holiday shopping season in recent years. Mainstays such as Barbie and Hot Wheels cars saw sales slump even though some Hot Wheels carried 99-cent price tags. International sales are also slowing as the global recession continues and the U.S. dollar strengthens, making overseas sales less profitable.
All of our core brands, including Barbie and Hot Wheels and core Fisher-Price, have been growing at retail, Mattel Chief Executive Bob Eckert said in a conference call. Barbie's regained the momentum. Barbie is gaining share in dolls and she continues to gain share even when we measure Barbie against the total toy universe.
