Barbie seen poised for strong comeback-analysts

By Justin Grant

NEW YORK, Jan 30 (Reuters) - After enduring nearly five years of declining sales, Barbie is poised for a comeback in 2007, industry analysts said, with Mattel Inc. (MAT.N: Quote, Profile, Research, Stock Buzz) rolling out sleek new products to revitalize the once-dominant brand.

In recent years, Barbie has been forced to compete for girls' attention with MGA Entertainment's pouty-lipped, street-smart, Bratz dolls.

Barbie has also seen her young fans flock to more high-tech items, such as iPods and video games.

But with new toys coming to market such as Chat Divas, a doll that can move and lip sync to music played on one of Apple Inc.'s (AAPL.O: Quote, Profile, Research, Stock Buzz) iPod music players, Barbie's sales should continue to rebound in 2007, said Gerrick Johnson, an analyst with BMO Capital Markets.

"I've seen some of the new 2007 product that got onto shelves a little early at the end of 2006, and I liked what I saw," said Johnson. "I'm looking forward to seeing the rest of the line at toy fair." Since coming to market in 1959, Barbie has been a key component of Mattel's profits, and the company has made reinvigorating the brand one of its top priorities in the last year.

On Monday, Mattel said gross sales of its Barbie line rose 3 percent both domestically and worldwide, during the fourth quarter.

Mattel, the nation's largest toymaker, also figures to drive Barbie's sales with its Rainbow Adventure Elina Doll and DVD game. The doll functions as an interactive controller for the game.