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Barbie strategy heads toward superhero over super body

Aug. 21, 2015 12:50 PM ETMattel, Inc. (MAT) StockMATBy: Clark Schultz, SA News Editor10 Comments
  • Barbie is still highly critical to the bottom line of Mattel (MAT -1.5%) due to the doll line's gross margin rate of close to 70%, note toy industry analysts.
  • The rise of the Frozen princess dolls and a cool reception by younger mothers to the "perfect body" Barbie stereotype have put the brand on the defensive.
  • "Toys like Barbie are extremely polarizing with parents. It has become emblematic of a perfect, flawless unachievable body type for girls," warns Liz Gumbinner from Cool Mom Picks.
  • Barbie sales have tailed off about 30% from the level of three years ago, but are seen leveling out at $900M per year. A plan to give Barbie a superhero twist is expected to fall more in line with modern tastes. This year's TV movie, Barbie in Princess Power, was a step in the right direction.

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