Bratz maker Isaac Larian couldn't help but gloat after archrival Mattel Inc. released its second-quarter earnings last month.
For the first time since Larian launched the dolls with their funky, streetwise look four years ago, he said, Mattel Chief Executive Robert Eckert mentioned Bratz by name, acknowledging on a call with analysts that they had put pressure on his company's iconic Barbie.
For The Record
Los Angeles Times Saturday August 06, 2005 Home Edition Main News Part A Page 2 National Desk 1 inches; 56 words Type of Material: Correction
Bratz dolls -- An article in Monday's Business section about MGA Entertainment Inc.'s Bratz dolls said the chief executive of rival Mattel Inc., in a conference call with analysts last month, had referred to Bratz by name for the first time. In fact, Mattel said, CEO Robert Eckert has publicly cited Bratz by name since 2002.
"They are no longer calling us their 'nearest competitor,' " said Larian, chief executive and owner of MGA Entertainment Inc. of Van Nuys. "That was a first," he said with a laugh.
If Larian has his way, Barbie will be playing second fiddle in years ahead to his girls with their "passion for fashion."
Indeed, Barbie, the world's most popular doll, has already yielded her crown to Bratz in Britain. And Barbie's grip in the United States is weakening, with sales sliding for a seventh straight quarter, down 6% for the three months ended June 30. Bratz's year-over-year sales rose 19% during the same period, research firm NPD Funworld reported.
For Larian, 51, the numbers are sweet vindication, given the skepticism of some in the industry who wonder whether he can continue to thrive as a largely one-brand man.
"I'm very competitive," he said. "I want to be No. 1 -- I don't want to be No. 2."
For now, he'll have to settle for being a strong No. 2, with privately held MGA estimating that Bratz racked up $2.5 billion in 2004 retail sales, between its dolls and products sold by licensees. Barbie dolls and licensed products recorded an estimated $3 billion in worldwide sales. (Larian declines to give wholesale sales figures or profit, and Mattel does not break out sales for Barbie separately.)
Starting this month, the battle in the dollhouse may get even more heated, with MGA set to release a direct-to-video movie, video game and music CD and produce an animated TV series tied to its new line of Bratz Rock Angelz dolls.
The Bratz product blitz will go up against Mattel's launch this month of "Barbie My Scene Goes Hollywood," a direct-to-video movie featuring an animated Lindsay Lohan character.
The debut of Rock Angelz, with an accompanying 300 licensed products, represents MGA's biggest launch ever. The "Bratz" animated series, which is set to debut in September on the Fox network, cost him $10 million to produce, Larian said.
