Barbie's Career Move Leads to Warning

Barbie dolls are losing favor with kids.  Sales of Mattel's signature doll dropped a whopping 21% last quarter, reports Matt Townsend at Bloomberg News. Revenue has declined more than 10% for the last four quarters. 

Mattel Inc.’s Hello Barbie, a new doll that can hold Siri-like conversations with kids, was meant to help spur a turnaround for the company. Instead, it’s drawn the ire of one of the toy industry’s most influential critics.

Toymaker Mattel announced disappointing earnings yesterday, missing analysts projections by $0.10 per share. One reason profits were discouraging has been the decline in popularity of the iconic Barbie doll, sales of which fell 12% — the fourth quarter in a row that Barbie turnover declined year-over-year.

Toymaker Mattel announced disappointing earnings yesterday, missing analysts projections by $0.10 per share. One reason profits were discouraging has been the decline in popularity of the iconic Barbie doll, sales of which fell 12% — the fourth quarter in a row that Barbie turnover declined year-over-year.

MattelBarbie has long been known for her unrealistic proportions. But now, Mattel has announced in a release that it has introduced three new body types as a part of an expansion of its Fashionistas line.

NEW YORK — Mattel’s Hello Barbie, a new doll that can hold Siri-like conversations with kids, was meant to help spur a turnaround for the company. Instead, it’s drawn the ire of one of the toy industry’s most influential critics.

For decades, Mattel’s famous line of Barbie dolls has been heavily criticized for perpetuating an unrealistic and unobtainable image of the female figure.

She’s had countless wardrobe changes, new hair colours and tried out 150 jobs. But this time, 55-year-old Barbie may need more than a career makeover to stay alive, as her popularity wanes amid competition from newer dolls and rising interest in smartphones and tablets. Mattel Inc., the world’s largest toymaker, said global sales for its iconic Barbie doll fell 15% in the second quarter ended June 30, the steepest drop since mid-2009. Barbie sales have slumped in eight of the past 10 quarters.