UPDATE 2-Mattel CEO to retire; COO to succeed him

* Eckert to retire at the end of the year

* COO Stockton to become toy company's new CEO

* Analysts see smooth transition, no strategy shift

* Shares down 2.7 pct

By Dhanya Skariachan

Nov 21 (Reuters) - Toy maker Mattel Inc's long-time chief executive, Robert Eckert, plans to step down from the post at the end of the year and will be succeeded by Chief Operating Officer Bryan Stockton.

Eckert's retirement, announced on Monday, comes as the maker of Barbie dolls, Hot Wheels cars and Fisher-Price toys heads into the holiday season, the biggest selling period of the year. Shares of Mattel, the world's largest toy company, fell 2.7 percent to $27.62 on the Nasdaq amid a broad market selloff.

Analysts said that the change was not a complete surprise and expected little change in strategy at the toy maker following the move.

"We had viewed it as something possible, probably in the next year or so. So, I mean, probably a little bit earlier than we were expecting but not completely unforeseen," UBS analyst Robert Carroll said.

Eckert, 57, joined the company as chairman and CEO in May 2000 and plans to stay on as nonexecutive chairman. Under Eckert's leadership, Mattel's portfolio of brands has grown exponentially and its stock has almost doubled.

Eckert also experienced his share of controversy in the form of a prolonged legal tussle with MGA Entertainment Inc over ownership of the once-billion dollar line of pouty-lipped Bratz dolls.

Analysts including Carroll, Margaret Whitfield at Sterne Agee and Edward Woo at Wedbush said Monday's news did not change their views on the company's stock.

Many had already seen Stockton as a strong contender for the top job.

"Mattel has a deep bench, but Bryan's ascension into the COO role this time last year was probably the early preparation for this transition," Carroll said.

Stockton has been at Mattel almost as long as Eckert, and their working relationship extends prior to Mattel as former employees of Kraft Foods .

"In terms of management philosophies and strategies, I think they are both relatively well-aligned," Carroll said. "So I don't anticipate any meaningful change."

Stockton, 58, will take over as CEO on Jan. 1. He joined Mattel in November 2000 and was named to the new position of COO in January 2011. He has been credited for boosting Mattel's international footprint and sales.

"They have had a good year. Bryan Stockton is very experienced working on international prior to his appointment as COO, and I expect a smooth transition regarding his appointment in January as CEO," Whitfield said.

Outgoing CEO Eckert also gave Stockton his stamp of approval.

"Bryan has a proven track record as not only a great operational leader, but also as a seasoned strategist," Eckert said on Monday.