Everything is starting to sag as Barbie approaches her 50th birthday.
The plastic princess may be getting made up ready for her big party next month, but there is no disguising the wrinkles that have appeared in her formally svelte sales figures - and there is nothing
pretty about the bottom line.
Barbie's contribution to the toy giant Mattel's financial results yesterday was so disappointing that its shares plunged by more than 15 per cent on the announcement.
The doll range, conceived by Mattel co-founder Ruth Handler in 1959, saw its global sales tumble by 21 per cent in the final three months of last year, as the recession crimped Christmas present buying and the rising dollar reduced the value of overseas income.
These woes compounded Barbie's long-running battle with the signs of ageing, which resulted in lost business to competition from trendier models.
Barbie did at least win one recent fight, with the upstart challenger Bratz, after Mattel successfully sued Bratz owner MGA, claiming the brand was created by a Mattel employee and was therefore Mattel's property.
Mattel's profit for the quarter of US$176 million ($345 million) was 46 per cent down on the same period in 2007, and missed forecasts from Wall St analysts.
The collapse of Woolworths in the UK was one of the factors cited by Robert Eckert, Mattel chief executive, as he unveiled the gloomy results.
"Toy retailers weren't immune to the economic downturn, with significant toy sellers in the US, UK, Mexico and other major markets either closing their doors or entering bankruptcy," he said. "Against that backdrop, we underperformed for the quarter, and ultimately the year, due to a combination of lacklustre sales, lower gross margin and higher expenses."
The current year would be one of relentless cost-cutting for Mattel, Eckert warned.
However, it warned that the year would be rocky, with consumers reluctant to countenance much in the way of inflation.
Analysts said the build-up of unsold stock on toy store shelves and in warehouses would hobble results in the early part of 2009.
- INDEPENDENT
