BARBIE VS. BRATZ THE FAKE FUR FLIES AS A LEGENDARY FIGURE IN TOYS BATTLES A GANG OF IMPERTINENT UPSTARTS.

Byline: Brent Hopkins Staff Writer

EL SEGUNDO - Barbie has gotten herself into a nasty catfight, one that's cost her her sales, her reputation and even her boyfriend.

The venerable blond icon, a staple of Mattel Inc.'s girls' line for decades, has found herself facing stiff competition from MGA Entertainment's saucy Bratz dolls. The edgier, fashion-forward Bratz have nearly single-handedly eaten away at Barbie's market share for the last several years, forcing Mattel to aggressively reposition itself in an attempt to reinvent its pink-swathed princess.

Mattel reported sharply reduced first-quarter earnings on Tuesday, with Barbie sales slumping 6 percent. Sales climbed to $780.9 million from $745.3 million in the same period a year ago, with net income dropping to $9 million, 2 cents per share, from $32.8 million, 7 cents per share.

Barbie, toy experts say, is experiencing a bit of an identity crisis.

``We're trying to speculate where she is,'' said Pamela Brill, senior managing editor for Playthings Magazine. ``Barbie will always have a place in the toy arena because she's got a historical element. But she's been going through a metamorphosis, breaking up with Ken and going for a younger guy.''

The toy giant has tried a number of tactics to keep itself hip, launching My Scene Barbie and Flavas, both more cartoonish, hiply dressed dolls that analysts note bear a clear resemblance to Bratz. Longtime boyfriend Ken also got the boot, in a very public breakup just before Valentine's Day, replaced by a newcomer, Australian surfer Blaine.

``What's Mattel teaching kids?'' laughed Isaac Larian, president and chief executive officer of the North Hills-based MGA.

Larian, never shy about offering a flamboyant comment at the expense of his archrival, can speak with some authority. The privately held company claims to have sold more than 50 million dolls since their launch in June 2001. Last year, total worldwide revenue hit $1.3 billion.

Mattel representatives did not respond to questions about Barbie's place in the industry, but chairman and CEO Robert A. Eckert offered a downcast assessment for the entire company in a statement Tuesday. The toy maker blamed cost pressures and growth initiatives for the fall in profits.

``While we are not surprised by the results for the quarter, we are not pleased,'' he said. ``As I have said before, improving top-line growth is our main focus for the year, and we will continue to invest in programs and initiatives in order to drive future top-line growth.''

Mattel stock lost 32 cents, or 1.72 percent, to close Tuesday at $18.33.

With both toy makers locked in a battle for the crown of hipness, other industry players are scratching their heads. In the competition, Barbie has shed some of her wholesome reputation, while Bratz has rolled out new lines of provocatively-dressed dolls.

``I'm certain it won't last,'' said Bob Solomon, chairman and chief executive officer of Woodland Hills-based Applause LLC. ``We've been pushing the envelope for the last several years: how much can we shock, how irreverent can we be? ... We're such hypocrites. We judge Janet Jackson and Britney Spears for their uncouthness, and yet we give our kids Bratz. It'll end soon.''

Larian confidently disagrees. He's got two Toy Industry Association Toy of the Year awards and deals with every major toy retailer to back his cockiness up.

``They're not a fad,'' he said. ``This is the No. 1 lifestyle brand for girls age 7 to 14. If we keep innovating, this brand will be around for ever. Bratz is the truth, and Barbie isn't anymore.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

CAPTION(S):

2 photos, chart

Photo:

(1 -- 2 -- color) Sales of the Bratz line of dolls, right, have walloped those of Mattel mainstay Barbie, left.

Charlotte Schmid-Maybach/Staff Photographer

Chart:

MATTEL'S PLUNGE