Oct 23 (Reuters) - Mattel ( MAT ) lowered its full-year

sales forecast on Wednesday as the Barbie parent heads into the

crucial holiday shopping season against the backdrop of muted

demand for toys.

The company now expects 2024 net sales to be in the range of

flat to down slightly from last year's $5.44 billion, compared

with its prior estimate of flat on a constant currency basis.

A shorter holiday season, with five fewer days between

Thanksgiving and Christmas, has prompted retailers including

Walmart ( WMT ) and Target ( TGT ) to roll out early deals on

toys with low price points.

Net sales fell for the third straight quarter in the

July-September period, declining 4% to $1.84 billion. Analysts

on average had expected a 3.2% decline to $1.86 billion,

according to data compiled by LSEG.

Worldwide gross billings for its Dolls category slumped 14%.

The "Barbie" movie release last year had boosted demand for

Barbie-themed toys and other products, but the buzz has since

eased.

Mattel ( MAT ) has turned to aggressive cost controls to ride out

the sluggish demand. It has set a target of $200 million in

savings by 2026 through efforts such as streamlining its supply

chain and exiting or out-licensing underperforming products.

The Hot Wheels parent raised its annual adjusted gross

margin expectation to 50% from a prior range of 48.5% to 49%.

Adjusted gross margin increased 210 basis points to 53.1% in the

third quarter.

Mattel ( MAT ), which is focusing on intellectual property

partnerships for its popular brands such as Disney Princess and

Despicable Me, maintained its annual forecast for adjusted

earnings in the range of $1.35 to $1.45 per share.

On an adjusted basis, it earned $1.14 per share for the

three months ended Sept. 30.

Analysts had expected a profit of 95 cents per share.