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Mattel income slides on drop in Barbie sales

Mattel quarterly profit fell short of analysts’ expectations as price increases hurt sales of its iconic Barbie dolls and Hot Wheels cars, sending the world’s largest toy company’s shares down more than 7 percent in early trading.

Toymakers have been forced to offer discounts to lure customers, but Mattel raised prices this year to keep margins around 50 percent as the costs of labour, transportation and materials like resin rose.

The company’s gross margins increased to 50.9 for the first quarter from 49.7 percent a year ago.

(Source: CNBC)