All five Stealth Rides fold flat and slide out of a plastic case that functions as both a carrying case and a remote control. With the push of a button, the "flat" cars transform into three-dimensional, fully functioning remote-control vehicles.

"Containing a fully functioning vehicle in a pocket-sized case will allow kids to play anywhere, anytime," said Geoff Walker, senior vice president with Mattel Brands. "The vehicles [provide] a unique and cool level of play experience that was not previously possible."

The largest U.S. toy maker reported a profit of $328.4 million, or 89 cents a share, up from $176.4 million, or 49 cents, a year earlier. The periods included tax benefits of 8 cents a share and 13 cents, respectively.

Despite a 12% increase in Barbie sales, its overall sales were lackluster, with revenue climbing 1% to $1.96 billion. Sales fell 2% in the U.S., where Mr. Eckert said Mattel lost "a little bit" of market share, mostly as a result of fewer toys tied to entertainment than last year.

Analysts polled by Thomson Reuters had most recently forecast earnings of 68 cents a share on $1.98 billion in revenue for the El Segundo, Calif., company.

The new products from Hasbro's Playskool division will be based on Elmo, Big Bird, Cookie Monster and other mainstays of the television program, according to a statement today. The line of toys and games by Pawtucket, Rhode Island-based Hasbro will be available in stores starting 2011.

Fisher Price, a subsidiary of Mattel Inc., the world's biggest toymaker, owned the rights for the last 10 years, said Sherrie Westin, chief marketing officer of Sesame Workshop. The switch was made because Hasbro has the right strategy to develop a year-round business, Westin said. More Sesame Street toys will be sold throughout the year going forward, she said.

"Our approach to the consumer is to deliver products throughout the year, not just in the fourth quarter," John Frascotti, chief marketing officer of Hasbro, said.

The settlement provides "tens of millions of dollars in monetary relief," plaintiff law firm Whatley Drake & Kallas LLC said in a statement. Consumers who participated in the recall will get either a check for 50 percent of the total vouchers they sent in or $10, whichever is greater, according to the law firm.

Mattel recalled more than 21 million toys made in China, including Elmo Stacking Rings and Bedtime Dora, after they were found in 2007 to have lead paint or dangerous designs. After the recalls by Mattel and other companies in 2007, Congress overhauled consumer regulations, effectively banning lead in toys.

But the "really shocking" aspect of Mattel's results was its inventory level, up 13.3 percent from a year ago to $485.9 million, said BMO Capital Markets analyst Gerrick Johnson.

"That means things deteriorated much more quickly than they had planned," Johnson said.

"There is no reason for them to have extra inventory for the first quarter, because they have no entertainment properties this year. It also might mean the first quarter's going to be a lot weaker than we thought because it means they probably brought inventory into the country to distribute for spring, but retailers were like, 'Ah no thanks, keep it.'"

The interior design star will be updating Barbie's bedroom, living room, and, of course, her drool-worthy closet, in an actual Malibu beach house, which will serve as the backdrop to the doll's 50th blowout bash on March 9. And for those of us who still love playing house, Barbie and Adler will be launching a "Jonathan Adler Loves Barbie" collection in the fall of 2009, including designer pottery, pillows, decorative objects. Don't forget the Jonanthan Adler-designed Barbie that comes with her own matching furniture!

American toy manufacturer, Mattel, says the store is part of the celebrations for Barbie's fiftieth birthday in March. And the choice of the location reflects the growing base of Chinese fans, who know Barbie as " Ba Bi Wa Wa". The world's most glamorous doll couple, Barbie and Ken, arrived in downtown Shanghai to help launch what is being billed the biggest Barbie store in the world.