Check out the Island of Misfit Toy Earnings.
 
Mattel bumped along like a train with square wheels in the fourth quarter, posting a 46 percent drop in earnings for the quarter that includes the key holiday selling season.
 
Sales fell 11 percent, a particularly bad sign given the idea that parents would sacrifice shopping for themselves in order to buy toys for their children during the holidays.
 
Granted, part of the sales decline was due to the rising dollar, which hurts the value of sales outside the United States.
 
But U.S. sales also fell 6 percent. And Barbie is really sagging, with a 21 percent drop in sales. Maybe her age is showing. She does hit 50 this year.
 
“Our business wasn’t immune from the deteriorating economic environment of 2008,” CEO Robert Eckert said in a statement.
 
Rival toymaker Hasbro will report next week. But at least it has that Monopoly money to cover any shortfalls.
 
Also in the basket: 
  
Bharti Wal-Mart picks name for cash-and-carry stores
 
Tough times for luxury watches (WWD, subscription required)

(Photo: Reuters)

A singing and dancing Elmo Live said hello to the world on Monday at the Toys “R” Us store in Times Square.

Elmo Live is Fisher-Price’s latest version of the Sesame Street fixture, after Tickle Me Elmo in 1996 and TMX Elmo in 2006. Fisher-Price is a unit of top U.S. toymaker Mattel Inc.

Though consumers are expected to remain squeezed for cash this holiday season, toy executives have said that parents will manage to spend for their kids even if it means cutting back on gifts for themselves. The National Retail Federation has predicted U.S. holiday sales in November and December will grow at 2.2 percent — the slowest pace in six years.

Other tracking firms say holiday spending could emerge the weakest in about a decade.

On Monday, Elmo Live made its case to shoppers as to why cash-strapped parents might want to buy their kids their very own Muppet this holiday season – it sang, danced, told jokes and stories and laughed at various stages of a nearly half-hour presentation. The toy can even wave its arms and cross its legs.  

Toys “R” Us is selling the $59.99 toy exclusively in its store today, ahead of the U.S. launch on Oct. 14.

Not many parents seemed perturbed by its price.

“With things costing what they do, I think it is fair,” said Asha Jefferson, mother of nearly 3-year-old Ava. Jefferson said she never exchanges gifts with her husband, so they do not hesitate to buy gifts for their daughter.

But a little after 10 a.m., there did not seem to be any huge rush to snap up the latest Elmo — cash registers were relatively free and parents sauntered around the store with no particular hurry to grab an Elmo.

Things will pick up closer to Thanksgiving, maybe?

(Photo\Reuters)

Check Out how the iPod finally made it into the Toys “R” Us hot toys list for the holidays.

This holiday season, Apple’s pink 8 GB iPod nano, Nintendo’s Wii Fit and the Fisher-Price Sesame Street Elmo Live toy are topping the list of most sought-after toys.

Even though iPods have topped holiday wish lists for years, Toys “R” Us said this is the first time it has included the portable media player on its hot toys list. Late perhaps, but a company spokesman said in an e-mail that the iPod nano in pink makes it “doubly hot” and that Toys “R” Us thinks the iPod appeal is starting to reach kids.

The main question though is, whether it will come loaded with Miley Cyrus tunes?

To avoid disappointing shoppers hungry for the popular Nintendo Wii Fit, which gives gamers some exercise, Toys “R” Us said it expects to get regular shipments of it.

Other top toy picks include EyeClops Night Vision Infrared Stealth Goggles from Jakks Pacific, Furreal Friends Biscuit, My Lovin’ Pup from Hasbro and the Pink Tag Reading System from LeapFrog.

The Toys “R” Us list comes as the holiday sales season is expected to be gloomy for both consumers and retailers.

Also in the basket:

Rite Aid Q2 loss widens; sees bigger FY09 loss

Holiday sales lose luster for inundated consumers

Longs says FTC is probing Walgreen bid 

Pilgrim’s Pride loss may put it in covenant default

(Photo: Reuters)