To understand what is happen we have to look at Hasbro and Lego 2013 Annual Report:
Mattel 2013 Results:
Worldwide net sales up 1% from the prior year;
North American gross sales down 2% and International gross sales up 5%
Worldwide gross sales for core brands: Barbie down 6%; Hot Wheels down 4%; Fisher-Price down 6%; and American Girl up 11%;
On a regional basis, full year gross sales were down 2% in the North American Region, with no impact from changes in currency exchange rates.
For the International Region, gross sales were up 5%
Lego 2013 Results:
Revenue for the first half of 2013 was DKK 10,363m compared with DKK 9,134m for the same period last year – an increase of 13%
In local currency (i.e. excluding the impact of foreign exchange changes) revenue increased 15% year over year.
The LEGO Group increased its share of the global toy market to approximately 8.8 % – up from 8.6% at the end of 2012
Sales to consumers rose by 8 % in European markets and by 4% in North and Latin America.
The strongest performance was experienced in Asia with growth in consumer sales of over 35% for the first half of 2013
Top selling lines: City, Star Wars, Duplo, Friend and Chima.
DUPLO, Technic and Creator experience high growth rates in 2013
Just glancing at the numbers Lego is doing well better off than Hasbro in terms of growth. (Hasbro 1% growth vs. Lego 13% growth)
Mattel have the problem that its traditional brand toys are not selling well at all.
Not surprising Hasbro had to do something to boast its sales or else its shareholders would questioning the board of directors direction.
Mattel is hoping to boast its sales by $405 million.