Ask Matt: Can Mattel survive without Disney Princess?

Q: Can Mattel survive without Disney Princess?

A: Mattel (MAT) lost the lucrative license for Disney (DIS) Princess dolls starting this year. But the toymaker is trying to show it has some magic of its own.

Mattel’s moves to show there’s life without Disney Princess seem to be appeasing investors for now. The company late Wednesday reported quarterly revenue of $957.3 million, which was down 3% from the same year-ago period, but 2% better than expected, says S&P Global Market Intelligence. Similarly, the company posted an adjusted quarterly loss of 2 cents a share, but that was better than the 6 cents a share loss analysts expected. Shares are up 21% this year to roughly $32 a share. Mattel is showing it has some momentum. Worldwide gross sales of Barbie rose 23% during the quarter. Much of the growth was due to licensing revenue from Universal, and a fresher line-up of products, says Arpine Kocharyan, analyst at UBS. Worldwide gross sales of the company’s Wheels category, which includes Hot Wheels, was up 1%. More work needs to be done, however, as the company faces hurdles. The American Girl brands posted a 19% decline in sales during the quarter and Monster High is suffering shelf space challenges, Kocharyan says.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.