Perhaps it is the cynic in me, but I was not surprised to read this story about Wal-Mart Stores Inc. (WMT) from Bloomberg. The news outlet obtained an e-mail that was sent to Walmart managers instructing them to raise prices on an average of 1,800 types of toys per store. The managers were instructed to perform the price markups "as soon as possible" and were told that the price changes were "to better enable your store and the company to have a successful financial month."

Walmart stated that these price increases went into effect because temporary discounts on products (including toys) ended on November 30. Spokesman Ravi Jariwala, spokesman for Walmart, said in an e-mail, "Once a rollback ends, the item returns to its original everyday low price." That said, Eric Johnson director of the Center for Digital Strategies at the Tuck School of Business at Dartmouth noted that "In previous years Wal-Mart has come out and hammered everyone with unbelievably low toy prices ... They stepped away from that this year and after Thanksgiving their prices have crept back up."

Toy manufacturer Mattel (MAT) announced Friday morning that its third-quarter earnings increased to $283.3 million, or 77 cents per share. The results were 23% better than last year's third-quarter earnings of 63 cents per share, or $229.8 billion.

As for sales, the toy maker pulled in $1.83 billion, which is 2% better than last year's same-quarter results. Compared to a year ago, the results were very solid; compared to expectations, the results are mixed. The Street expected MAT to earn 75 cents per share (which it beat by two cents per share) on sales of $1.94 billion (which MAT missed).

Toy titan Mattel (MAT) announced Friday morning that its second-quarter income more than doubled, driven by Barbies and "Toy Story 3" toys. MAT logged income of 14 cents per share during the quarter, far better than the six cents per share earned in the same quarter a year ago.

Unfortunately, while the earnings were far better than a year ago, the toymaker missed the Street's estimate by a penny. Revenue checked in at $1.02 billion, 13% better than last year and matching expectations.

Early this morning, Mattel (NYSE: MAT) announced that its quarterly loss totaled $51 million, or 14 cents per share. This loss met the Street's expectations, but it was also a penny wider than the same quarter a year ago. The toy giant blamed the larger-than-anticipated loss on a stronger dollar and inventory cuts at retailers. Quarterly sales dropped 15% to $785.6 million in the quarter, including a 7% hit from the stronger dollar, reducing overseas sales values.

Mattel's CEO Robert Eckert stated that the company will keep controlling costs as "tough market conditions test the resilience of toy companies," which rely on parents to boost sales. Unfortunately for Mattel, parents have been cutting back on toy purchases in the current market environment, forcing retailers to cut inventories in an effort to curb excess merchandise. The article cites a report from market research group NPD Group that showed total retail toy sales dropped 3% in 2008.