If your holiday gift giving included Barbie, Polly Pocket or TMX Elmo, then you helped Mattel and its subsidiaries exceed their expectations for 2006. The toymaker, whose divisions include Fisher Price, reported strong sales and a higher stock price than forecasters predicted. Barbie showed continued growth for the fourth quarter in a row, in the face of wicked competition from those wily Bratz.
Mattel's American Girl division failed to meet expectations for the year but according to CEO Robert Eckert, still managed to have a record year. New American Girl bistro-boutiques opening this year in Dallas and Atlanta should contribute to the brand's continued growth.
Eckert's discussion of Mattel's success held a dim note for parents: he noted that rising costs of the raw materials and labor used to make his company's toys will likely be reflected at the retail level, though he said that he's been comforted by the fact that consumers (that's you and me, especially if your daughters crave ownership of all twelve Dancing Princesses) are willing to pay higher prices for quality and innovation. Or, maybe we'll just stick with just the one Dancing Princess for now (even if I am secretly hankering for the whole bunch myself). Maybe we'll funnel that money into Mattel stock instead.
