US crisis hits Barbie

amplify image

Barbie

Mattel Inc, the largest U.S. toy maker, said on Monday that U.S. Barbie doll sales fell 12 percent during the first quarter.

Barbie has been one of Mattel's core brands since coming to market in 1959. The toy maker said worldwide gross sales of the brand were flat.

The El Segundo, California-based maker of Barbie dolls, Fisher-Price toys and Matchbox cars reported a loss of $46.6 million, or 13 cents per share, compared with last year's quarterly profit of $12 million, or 3 cents per share.

Sales fell 2 percent to $919.3 million from $940.3 million in the year-ago period, despite the benefits of a weak dollar helps boost sales overseas.

Chief financial officer Kevin Farr told analysts a decline in profit margins was caused by "cost pressures from commodities, Chinese labor rates, the appreciating Chinese currency, and incremental product testing costs."

Mattel said global sales in its Fisher-Price unit fell 13 percent to $341.3 million, mainly due to declines in sales of Fisher-Price Friends products.