There is usually a toy glut in addition to Barbies aren't selling

'The Barbie Dreamhouse is usually my worst nightmare'

Mattel may have a fresh CEO which used to work for Google. nevertheless the floundering toymaker still incorporates a huge problem. Fewer kids want to play with the company’s Barbie in addition to American Girl dolls, Fisher-cost toys in addition to Mega Bloks.

Mattel (MAT) stock plunged 11% Friday — to their lowest level since October 2015. The company announced Thursday which its latest results missed forecasts.

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Sales plunged 15% inside the quarter in addition to Mattel reported a bigger than expected loss.

The stock was the worst performer inside the S&P 500 on Friday.

CEO Margo Georgiadis, who left her job as president of Google’s Americas division in January to take over at Mattel, said inside the earnings Discharge which the results were worse than expected due to “the retail inventory overhang” after the holidays.

In different words, parents didn’t buy their kids more fresh toys after splurging on them in December. nevertheless Mattel has been struggling for some time today.

which’s one of the reasons which Georgiadis succeeded Christopher Sinclair as CEO, inside the first place. (Sinclair is usually today executive chairman.)

Related: the item was a Blue Christmas for Mattel

Simply put, Mattel doesn’t contain the toys which kids want. Barbie sales plunged 13%. American Girl sales were down 12%. in addition to the company’s Construction in addition to Arts & Crafts unit, which includes Lego competitor Mega Bloks, plummeted 38%.

in addition to the item’s not just a matter of children abandoning traditional dolls, action figures in addition to board games in favor of smartphones, tablets, video games in addition to different technology.

Mattel rival Hasbro (HAS), which has licenses tied to Disney’s (DIS) Star Wars franchise, in addition to also recently took over the Disney Princess line of toys through Mattel, has been on fire lately.

Shares of Hasbro are up nearly 25% so far in 2017 in addition to more than 75% over the past three years. Mattel’s stock has plunged nearly 20% already in 2017 in addition to is usually down more than 40% since early 2014.

Hasbro’s stock even rose slightly Friday, a sign Wall Street believes Mattel’s problems are company specific in addition to not a broader indicator of weak consumer spending overall.

Related: Let the item go? No way! Hasbro soars thanks to Frozen

Hasbro will report its latest results before the market opens Monday. Wall Street is usually expecting which sales in addition to earnings were flat inside the first quarter, which is usually typically not a big one for toy companies.

So will Georgiadis, who in addition to Google has also worked for Groupon (GRPN), credit card company Discover (DFS) in addition to consulting company McKinsey & Company, be able to turn Mattel around? She is usually a veteran exec, nevertheless lacks toy industry experience.

She noted inside the earnings Discharge which sales in China in addition to different parts of Asia were strong. She also expressed desire which toys tied to another upcoming Disney movie — Pixar’s Cars 3 — will help boost sales inside the coming quarters for its Hot Wheels brand.

nevertheless the pressure is usually on Georgiadis to quickly prove to kids, parents in addition to investors which Mattel will be able to revitalize some of its classic brands like Barbie in addition to Fisher-cost in addition to also launch fresh hit toys as well.

Otherwise, the stock will continue to languish in Wall Street’s equivalent of the Island of Misfit Toys.

sy88pgw (fresh York) First published April 21, 2017: 12:48 PM ET

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There is usually a toy glut in addition to Barbies aren't selling

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