NEW YORK: Mattel Inc, the world’s largest toymaker, reported its first quarterly net loss in nearly five years due to a double-digit fall in sales of its iconic Barbie dolls, sending the company’s shares down as much as 3 per cent in early trading.

Mattel’s worldwide sales fell 5pc to $946.2 million in the quarter ended March 31 due to lower demand for its key toy brands.

Sales of Barbie dolls fell 14pc, while those of Fisher-Price line aimed at infants and preschoolers declined 6pc.

Mattel has looked to newer products to boost sales as children increasingly opt for electronic games and other gaming activities over traditional toys that are decades old.

Barbie made her debut in 1959, distinguishing herself in the mass market for dolls with her fashion model-like figure.

“(Barbie is) still a $1.2 billion business. It is still very meaningful for Mattel and it is very hard to grow a $1bn business,” Morningstar analyst Jaime Katz told Reuters.

In February, the company offered to buy Canada’s Mega Brands Inc for about $460 million to compete with Denmark’s Lego,.

Earlier this month, Mattel launched a new line o toy guns called BOOMco. Sales of its chubby-faced American Girl dolls grew 5pc, slower than in recent quarters.

The decline in sales mostly reflects higher retail inventories entering the quarter and the timing of Easter, which falls in the company’s second quarter this year, Stifel Nicolaus analyst Drew Crum wrote in a note.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.