Barbie is an iconic worldwide brand. Even Mattel’s Hot Wheels and Matchbox brands are widely recognized as imagination creators for children. However, something is seriously wrong with these brands as seen in their recent sales trends. Barbie’s sales have declined in a range of 13% to 15% in the past three quarters. In the second quarter alone, Barbie sales fell 15%. Mattel’s Wheels segment, which includes Hot Wheels and Matchbox, has logged four straight quarterly sales drops. While this has happened, in the last two quarters Mattel’s gross profit margin has been vaporized. TheStreet's Retail Contributor Brian Sozzi shares insights into what's plaguing these iconic toy brands.

More from Video

The CEO of Wall Street Disruptor Symphony Reacts to Tuesday's Market Declines

The CEO of Wall Street Disruptor Symphony Reacts to Tuesday's Market Declines

60 Seconds: What is the Yield Curve and Why is it Screaming Recession?

60 Seconds: What is the Yield Curve and Why is it Screaming Recession?

Coke Has Figured Out How to Stay Relevant (Watch)

Coke Has Figured Out How to Stay Relevant (Watch)

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Video: Jim Cramer on Rising Interest Rates, Trade Worries & Caterpillar

Video: Jim Cramer on Rising Interest Rates, Trade Worries & Caterpillar