Are kids really losing interest in toys?
A new report from toy giant Mattel shows its second quarter earnings is mostly bad news, with a sharp drop in revenue driven by poor sales. (Via CBS)
The news drove stock prices down as much as 7.5 percent Thursday, making Mattel the second-worst performer on the S&P 500. Worse, some of the company's biggest brands tanked. Barbie sales are down a whopping 15 percent. (Getty Images)
The Wall Street Journal says part of the problem is that Barbie might have lost her appeal.
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CNN says the bigger culprit is likely that kids just aren't playing with toys as much as they used to. Instead, they're turning to electronics for their entertainment. The American Academy of Pediatrics says the average child spends seven hours a day on electronics.
But there might be a silver lining for Mattel.
A writer for The Motley Fool says while toy companies are struggling, Mattel might actually be able to turn things around, having spent the last year laying the groundwork for future growth. The company's CEO Bryan Stockton echoed that in a statement, listing accomplishments like buying Canadian toy company Mega Brands, reducing inventories and all around setting itself up for success in the second half of the year.
Mattel did have a little good news this quarter though. Mattel's American Girl doll sales rose by 6 percent.
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