Barbie hasn146;t rebounded since Valentine split with Ken

Maybe it was her breakup with Ken around Valentine8217;s Day, but Barbie just can8217;t seem to get the spring back in her step. Mattel In...

Maybe it was her breakup with Ken around Valentine8217;s Day, but Barbie just can8217;t seem to get the spring back in her step. Mattel Inc. reported on Tuesday that dismal sales of the world-famous doll helped drive down the company8217;s first-quarter profit 73 pc.

The El Segundo, California-based company, which also makes Hot Wheels and Fisher-Price toys, reported a net income of 9 million, or 2 cents a share, for the three-month period ending March 31. That was down from 32.8 million, or 7 cents, in the same period last year. Total sales climbed 5 pc to 780.9 million, helped by the weak dollar. The results were below the expectations of analysts surveyed by Thomson First Call, which had projected earnings of 9 cents a share.

Sales of Barbie 8212; which accounted for one-third of Mattel8217;s nearly 5 billion revenue last year 8212; fell 15 pc domestically and 6 pc internationally. In 12 of the last 13 quarters, Barbie sales have declined or been flat. 8216;8216;The first quarter of the year was not a good quarter,8217;8217; Chief Executive Robert Eckert told investors and analysts during a conference call. 8216;8216;While I8217;m not pleased, I8217;m not surprised.8217;8217;

Barbie8217;s widely publicized February breakup with Ken 8212; a male doll that has served as Barbie8217;s boyfriend for more than 40 years 8212; didn8217;t boost sales of the plastic beauty.

Still, Barbie remains the world8217;s best-selling doll, although it has been losing market share to MGA Entertainment8217;s Bratz toys, which appeal to older girls. Mindful of the Bratz competition, Eckert rolled out similar dolls 8212; called Flavas 8212; only to withdraw the line in last year8217;s fourth quarter after they failed to resonate with young consumers. Since then, Eckert has outlined a new strategy that focuses on boosting Barbie sales, and Wall Street has greeted the plan with guarded optimism.

On Tuesday, Mattel shares hit a 52-week low of 17.40 before closing down 32 cents at 18.33 on the New York Stock Exchange. Shares have lost 10 percent in the past year. Analysts at Oppenheimer 038; Co. reiterated their 8216;8216;buy8217;8217; rating on Mattel8217;s stock, in part because of the company8217;s improved cash flow.

During the first quarter, Mattel began introducing the first of eight new 8216;8216;story-driven8217;8217; Barbies with loads of accessories and supported by DVDs and magazines, as well as a new Cali Girl Barbie that sells for about 5, far less than other similar dolls. Even when the new Barbie merchandise is fully rolled out, Eckert conceded Tuesday, sales might not rebound immediately.

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8216;8216;Realistically,8217;8217; he told analysts, 8216;8216;I think we8217;ll make a lot of progress this year but it8217;s probably 2005 before we can draw the ultimate conclusion of the success8217;8217; of the new Barbie products, he said.

Mattel8217;s other toy brands posted gains. Sales of Hot Wheels and other vehicles rose 1 pc; Fisher-Price8217;s were up 13 per cent and American Girl8217;s sales increased 17 per cent.

8212;LAT-WP