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Parents rejoice: Bratz dolls are going the way of the hula hoop!

The sexed up Barbies on collagen injections that have been the subject of a 9-figure lawsuit involving Mattel (NYSE: MAT) and MGA Entertainment are not expected to be the hit this holiday season that they have been in recent years.

The Wall Street Journal reports (subscription required) that Target (NYSE: TGT) will be slashing Bratz-devoted shelf space by 50%, and annual sales of the dolls are expected to fall 25% to $300 million. Wal-Mart (NSYE: WMT) has also slashed its Bratz orders and many retailers are offering steep discounts on the dolls, indicative of an inventory glut.

The decline of Bratz is bad news for Mattel, which is locked in litigation over rights to a brand that appears to be rapidly declining in value.

In addition, Bratz's risque image is causing problems for the company. Scholastic (NASDAQ: SCHL) has pulled Bratz books from its roster after parents and psychologists complained that the dolls modeled "precocious sexuality."

The end of the Bratz craze? Bravo! originally appeared on BloggingStocks on Mon, 22 Sep 2008 12:20:00 EST. Please see our terms for use of feeds.

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