Updated at 4:14 p.m. to reflect closing stock prices.

Mattel (MAT - Get Report) shares plunged 17.65% to $25.99 a share on Thursday after the Barbie maker unexpectedly reported weak 2016 fourth-quarter and full-year results last night.

The company reported earnings of 52 cents a share, compared to Wall Street expectations of earnings of 71 cents a share. The toy company posted revenue of $1.83 billion for the quarter, an 8% slip compared to the same period last year. Sales of Barbie products fell 2% globally during the quarter, disappointing in light of the brand's introduction of new dolls with varying body sizes and skin-tones. 

On an earnings call last night, outgoing Mattel CEO Christopher Sinclair said the miss was due to a 7% decline in holiday sales. Mattel lost its Disney (DIS - Get Report) Princess manufacturing rights to rival toy company Hasbro (HAS - Get Report) last year.

For the full year, Mattel posted adjusted earnings of 92 cents a share on $5.46 billion in revenue, lower than last year's earnings of $1.26 a share on revenue of $5.7 billion.