Barbie's Star Fades, Drags on Mattel's Sales Along with American Girl

Mattel's got girl problems and her name is Barbie. Sales of the iconic doll continue to slide and a surprising drop in sales of its American Girl toys could become another headache for the toy maker as it heads into the crucial holiday season. Mattel reported Thursday that Barbie sales fell 21% for the three months ended September 30, even sharper than the 15% drop in the second quarter. And American Girl's third-quarter sales declined 7%, compared with a 6% rise in the second quarter. Heightening tensions even more, Mattel's rival Hasbro recently landed the rights for dolls from the blockbuster Disney movie 'Frozen', a coveted relationship for Mattel. The rights for the 'Frozen' dolls will go to Hasbro in the spring of 2016. Dolls are traditionally a tough market to corner. There's a lot of competition and the affections of the target audience, namely little girls, can be fleeting.