US toy maker Mattel has released earnings for third quarter that dropped from last year, totalling $223.8 million (£144.6 million), or $0.66 per share. This was down from $331.8 million, or $0.97 per share, during the same quarter in 2014.
The company said revenue for the quarter fell 11.4 per cent to $1.79 billion, down from $2.02 billion last year.
Analysts polled by Thomson Reuters expected earnings of $0.80 per share on revenues of $1.89 billion for the quarter.
The chief executive, Christopher Sinclair, said the results were "broadly in line" with expectations. "We're very encouraged by the progress we are making on reenergising the company. As we continue our turnaround efforts, we remain comfortable with our full-year outlook," he added.
The company is facing its eighth consecutive quarter of declining sales, as children increasingly move away from traditional toys.
Barbie sales down
Barbie, which has been around for 56 years, has seen its popularity wane, with the iconic doll facing stiffer competition from tablets and consoles. Barbie sales fell 16 per cent in 2014.
Mattel also faces the loss of Disney Princess, one of the company’s most lucrative licensing deals, which is expiring next year.
It has already attempted to reverse its fortunes, parting company with chief executive Bryan Stockton in January, replacing him with board member Christopher Sinclair.
"Clearly, we have our work cut out for us," Richard Dickson, Mattel’s chief operating officer, told the New York Times.
He expressed optimism for some of the company’s core brands such as Mega Brands and Hot Wheels, adding that the company was "increasingly confident" that it could cover the revenue hole that Disney Princess will leave. In November, Mattel plans to introduce Hello Barbie, an interactive, Wi-Fi-connected doll.
Shares of Mattel remained flat in after-hours trading.
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