The overall revenue of Mattel Incorporated (MAT.O) fell for its fourth consecutive quarter as overall demand for the company’s billion-dollar brands, Fisher-Price and Barbie, increasing the pressure the toy maker is currently facing specially as the holiday shopping season is just around the corner.
Mattel Incorporated’s overall shares decreased as much as 6% after it stated that worldwide Barbie sales dropped to almost 21% during the year’s third quarter that ended September 30, while overall sales of pre-school toys from Fisher-Price decreased 16%.
Barbie, since its debut in 1959, distinguished itself when it comes to the doll mass market with its fashion and model like figure. Unfortunately, the doll fell out of favor among young, fickle-minded girls, who are preferring more and more electronic toys like tablets and watches or dolls that are based on Walt Disney animated movie hits.
Bryan Stockton the Chief Executive of Mattel stated that it is clear that the company have a lot of work ahead, especially as the company enters the fourth quarter of the year.
Overall sales of the said dolls have been significantly falling for almost three years now and Mattel’s other products like American Girl and Monster High dolls have failed to compensate for Barbie’s already fading charm.
Barbie’s market share in 2009 were more than the quarter of the overall market share of dolls & accessories in the U.S. but fell to 19.6% in 2013.
To add to Mattel’s problems, the company is also going to lose an essential license of exclusivity to Walt Disney to its rival Hasbro Incorporated (HAS.O) in making Disney Princess dolls.
Sean McGowan, an analyst from Needham & Co said to Reuters that overall sales of Disney dolls are about 6 to 8% of Mattel’s overall sales. Sean added that this could pose a very big threat to the company’s term margins as it spends more for new doll advertising and launches and advertising.
