After releasing its earnings report for the June quarter today, Mattel, Inc. (NASDAQ:MAT) shares began a desperate plunge on this morning’s market. The big problem, as with most post-earnings news, was that Mattel missed the targets set for it by Wall Street. At time of writing the company’s shares were down 6.88% to $43.14.
Before the market opened this morning, Mattel, Inc. (NASDAQ:MAT) revealed that it had earned 21 cents per share for the three months’ period ending June 30, on revenue totaling $1.17 billion. The figures didn’t quite match up to analysts predictions. By consensus, analysts were looking for earnings per share of 31 cents on revenue of $1.2 billion.
Mattel Barbie Products Fall Flat
One of the most worrying trends for the toymaker is the decline of one of its most iconic brand lines, the Barbie doll. According to this report, sales of Barbie products fell by 12% from the same period in 2012. At least some of the decline was made up for in the American Girl line, which rose 14% year on year.
There are massive problems ahead for Mattel, Inc. (NASDAQ:MAT) if the company cannot rescue its iconic brands quickly and effectively. Barbie, and the company’s other big toy lines, have a huge amount of marketing attached to the brand, making them an easier sell. If that name is removed, one of the company’s advantages disappears.
Barbie wasn’t the only toy line that fell flat in the second quarter. In the company’s Wheels line—Hotwheels being the line’s most famous product—sales fell by 6% year on year, and Fisher-Price, which concentrates on toys for younger children, slumped by 2.6%. Something needs to be done to rescue these iconic brands at the toy maker.
Back in Line
Today’s share dump puts Mattel, Inc. (NASDAQ:MAT) firmly in line with gains made by the S&P 500 since the start of the year. The company had grown steadily in value so far in 2013, and looked like quite a good bet just yesterday. Playing earnings is not for the faint of heart.
Mattel in Trouble
Mattel, Inc. (NASDAQ:MAT) is in trouble. Its biggest brands are faltering, and there may be no way back. The second quarter was the fourth consecutive quarter in which Barbie sales fell. Investors are worried about the future of the toy company, and they are certainly justified.