Mattel Gets Some Sparkle Thanks to New Barbies, Elmo and Pixel Chix

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Dressed like a princess and lit from within, the latest incarnation of Mattel Inc.’s icon Barbie is ready to kick those cheeky Bratz in their designer denim-clad fannies.


Barbie’s 12 Dancing Princesses and toy bin compatriots Elmo, Power Wheels, and Pixel Chix helped boost Mattel to third-quarter earnings last week that lifted the company’s stock 5 percent.


The El Segundo-based company said third-quarter net income rose 6 percent to $239 million, or 62 cents a share, beating Wall Street expections by a penny. Sales were up 7 percent to $1.79 billion. And Mattel stock has gained 35 percent over the past year, now trading at around $22 a share.


Chief Executive Robert Eckert said the company showed good performance across its portfolio. Its girls unit, which includes Polly Pocket toothpick-sized dolls with rubber clothing and Pixel Chix, an electronic game in which characters earn money and shop, was up 16 percent.


The new TMX Elmo, a souped-up, $40 version of the beloved Sesame Street character, already has parents brawling in the toy store aisles, with many stores in August selling out their first two-week supply in one day. It’s part of the Fischer-Price unit, where sales were up 9 percent.


“They’ve had some good new product introductions,” said Tim Conder, leisure analyst for AG Edwards & Sons Inc., who credits Mattel’s creative team for the company’s success. He said Mattel’s acquisition of techno toy firm Radica in August also shows much promise for the company.


And after 11 quarters of faltering sales, the Barbie product line was up 1 percent. Barbie’s makeover isn’t over, either. Last week Mattel introduced a line of Barbie dolls designed by pop princess Hilary Duff.


But Barbie’s designers still have their work cut out for them. The competing Bratz fashion doll line, owned by Van Nuys-based MGA Entertainment Inc. and manufactured by Malibu-based Jakks Pacific Inc., outpaced Barbie in sale growth last year, according to industry analysts.


Jakks, which also reported strong earnings last week, didn’t break out its Bratz sales figures for the quarter.

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