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By | November 7, 2017
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Revenue fell 30 percent for Middleton-based American Girl in the third quarter, allotment of an all-embracing balance abatement for ancestor aggregation Mattel, the California toy aggregation said backward Thursday.

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American Girl appear $88 actor in acquirement in the third quarter, bottomward from $124.5 actor for the 2016 third quarter.

Overall, Mattel — whose brands additionally accommodate Barbie and Fisher-Price — said sales fell 13 percent in the three months that concluded Sept. 30 compared with the aforementioned aeon aftermost year. Mattel appear a net accident of $603 actor for the division compared with a accumulation of $236 actor for the 2016 third quarter.

Retailer Toys R Us’ defalcation filing in September played a role in the acquirement abatement for Mattel. The aggregation said about bisected of its 22 percent bead in North American acquirement was due to the Toys R Us bankruptcy.

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American Girl, whose articles began affairs in Toys R Us food in 2016, additionally took a hit from the bankruptcy, American Girl backer Julie Parks said.

The aggregation said it affairs to accomplish structural changes to abridge the business and will cut $650 actor in costs over the abutting two years. No actual chat was accessible on how that may affect American Girl, which has added than 2,300 year-round employees, including about 470 in Middleton.

American Girl sells flush dolls, as able-bodied as books and accessories for dolls and girls.

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The third-quarter after-effects are “clearly disappointing,” Parks said. She said addition agency affecting American Girl was aftermost year’s authorization licensing deal, accretion the cast into the United Arab Emirates.

“That said, American Girl has been adverse headwinds for the accomplished several quarters, and we are continuing to assignment adamantine to balance the business,” Parks said.

She said American Girl’s efforts accommodate “restoring the brand’s exceptional accession with a renewed charge to account and quality.” initiating alone business technology, and awakening the company’s agreeable and storytelling.

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American Girl additionally affairs to move its New York City flagship abundance to 75 Rockefeller Plaza, replacing its aboriginal New York City abundance that opened in 2003. The new, 40,000-square-foot abundance will accessible Nov. 11 with new options including a salon area girls and their dolls can get analogous hairstyles and manicures, and girls can architecture their own dolls and baby outfits.

Expenses for the new abundance contributed to aggregation costs for the third quarter, Mattel said.

For the aboriginal nine months of 2017, American Girl had $234.2 actor in revenue, bottomward 18 percent from $285.9 actor for the aforementioned aeon aftermost year.

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