Mattel Crashes as Holiday Stumble Raises Turnaround Doubts

  • Deep discounting hurt margins during the period, CEO says
  • Fourth-quarter profit fell below lowest Wall Street estimate

Mattel Barbie dolls

Photographer: Daniel Acker/Bloomberg
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Mattel Inc. fell the most in almost eight years after posting weak holiday results, casting doubt on its turnaround just two weeks before a new chief executive officer takes overBloomberg Terminal.

The company postedBloomberg Terminal profit in the fourth quarter of 52 cents a share, excluding some items. That was well below the 71-cent average analyst estimate and even missed the lowest Wall Street projection of 61 cents. Sales also came in below predictions during the period, a critical stretch for toymakers.