Batman did his best, helping boost sales in Mattel's entertainment segment by 27 % for the second quarter, but it wasn't enough to keep Mattel from falling short of analyst's projections.  In spite of a gain of 10% in worldwide net sales, operating income as a percentage of net sales decreased, thanks in part to higher oil prices.  Mattel also took a one-time charge of $112.9 million resulting from a tax expense under the American Jobs Creation Act as the nation's leading toymaker repatriated some $2.4 billion in unremitted foreign earnings.  Without the tax charge Mattel would have reported earnings of 5 cents per share, significantly below the analyst's prediction of 7 cents per share.  Mattel reported a profit of 6 cents per share for Q2 2004.

Sales of Barbie dolls, Mattel's premier line, declined 4 % under intense competitive pressure from MGA Entertainment's Bratz dolls.  Sales increases posted by Mattel's Hot Wheels (up 4%), Fisher-Price (up 5%), and American Girl (up 20%) brands as well as Batman's strong performance helped make up for the drop in Barbie's performance.  In addition to higher oil prices, Mattel's CEO Robert Eckert also blamed 'a greater proportion of toys with higher royalty payments [like Batman] in the sales mix' for the decline in margin.  Despite the royalty payments Mattel's Eckert is obviously pleased about the revival of the Batman toyline, and he is clearly hoping that like Batman Begins, the Batman toys will have legs and continue to sell into the all important fourth quarter.  The Batman-fueled 27% growth in sales in Mattel's entertainment segment looks even better since Eckert admitted to 'sales declines in the Yu-Gi-Oh! and Harry Potter properties.'