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Shares of toymaker


(MAT) - Get Mattel, Inc. Report

were moving higher in Monday trading after the company said second-quarter earnings increased from the prior year and beat analysts' estimates by a penny.

Net earnings rose to $23.5 million, or 6 cents a share, from $20.9 million, or 5 cents a share, a year earlier. Wall Street was expecting Mattel to earn 5 cents a share, according to analysts polled by Thomson First Call.

The El Segundo, Calif.-based company said sales increased 5% to $804 million from $769 million last year.

Shares of Mattel were lately up 64 cents, or 3.8%, at $17.40. The stock closed Friday at $16.76, just above its 52-week intraday low of $16.55 reached July 13.

"The second quarter was consistent with our expectations that 2004 will be a challenging year," the company said in a statement. "To improve long term performance, we are acutely focused on addressing the top line by reinvigorating the Barbie brand and capitalizing on the positive momentum of our electronic learning strategy."

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Barbie sales worldwide fell 13% in the quarter, while sales in the company's entertainment unit increased 31%. Core Fischer-Price sales increased 12% and Hot Wheels sales were up 37%.

On Friday, Mattel's main rival


(HAS) - Get Hasbro, Inc. (HAS) Report

reported a higher second-quarter profit from the year earlier but said sales fell slightly. There is concern that the increased popularity of video games, aggressive pricing from discounters like


(WMT) - Get Walmart Inc. Report

and dependence on a small amount of mass merchandisers will hurt toy retailers in the near term.

Shares of Hasbro were recently down 16 cents to $17.80, near their 52-week intraday low of $17.15 hit on May 17.