Toys and other discretionary products not moving

“Consumer discretionary companies knew they were in for a tough recession. As job losses mount, spending on the fun and frivolous is naturally the first to go. But recent corporate results show especially big drops in sales at outfits that cater to consumers’ sense of whimsy.

Take Mattel (MAT), one of the world’s largest toymakers, which reported earnings on July 17. Mattel’s sales fell 12% in the U.S. and, ignoring the impact of currency movements, 16% overseas. The company managed to beat earnings expectations—with earnings per share of 6¢—by slashing costs. But the economy took its toll.”

Article:

Old Navy recall: toys with detachable eyes

Just this week, Disney had to recall a product with a similar problem.  In Old Navy’s case, they are stuffed animals with buttons for eyes.   Note to toy designers:  don’t make products with parts that can pop off.  These are choking accidents waiting to happen.

Old Navy Recall Notice

Disney toy recalled for posing choking hazard

Disney’s  “Handy Manny” Toy Tool Sets have been recalled because the toy tools have eyes that detach and pose a choking hazard to young children.  The picture in the link below suggests the problem.

News announcement:

Mattel settles lead poison suit

The toy company will pay 38 states $12 million settlement for claims that its toys manufactured in China contained excessive lead.  That figures out to be $300,000 per state.   Is that about the cost of the lawsuits?

Mattel is also suppose to adhere to stricter for lead in toys.  How strict?  I’m not sure  this is big consumer victory.  I’ll see what others say.

Article

HealthToys.org: A better Xmas and beyond

I’ve mentioned before, here, about how the Consumer Product Safety Commission regulations will not take place until after this Christmas session is over so here is a place to go to now if you want to make sure you buy safe toys.

HealthyToys.org which is sponsored by the Ecology Center.

Not only do they allow you to search on toys for health and safety concerns but they make it easy for you to communicate with the government and manufacturers about the importance of making toys safer.

Toys not safe enough

Last year hazardous toys sent 80,000 children under five to the emergency room.  The Consumer Product Safety Commission has stronger protections in place BUT many of them do not take place until 2009 and a key provision has been suspended indefinitely.  And the biggest shopping season for children’s toys is still to come in 2008

Trouble in Toyland