It hasn’t been a pretty year for Mattel Inc.MAT, -1.72% It’s been one of the S&P 500’s worst performers. Its top brand,Barbie, saw declining North American sales for eight quarters while momentum for Monster High dolls, which Mattel created in 2010, has also slowed. On an annual basis, Mattel will likely remain as the world’s largest toymaker, but its closely-held Danish rival Lego has surpassed Mattel in first-half sales. Analysts say Lego has a shot to unseat Mattel after it beat Hasbro HAS, -0.62% as No. 2 toymaker. Meanwhile, Hasbro in September inked a deal with Disney DIS, -2.74% to take over Mattel’s Disney Princess, including Frozen fashion doll licenses beginning in 2016. Those products will likely generate $560 million in sales this year, including $150 million from Frozen, according to Needham & Co. analyst Sean McGowan. “The most important thing is whether there has been improvement in key areas of weakness,” including Barbie, Monster High and Fisher-Price, McGowan told MarketWatch ahead of its earnings release Thursday. “You want to see if they make any progress.” Earnings: Analysts estimated Mattel’s third-quarter profit declined to $1.04 a share from $1.21 a share, according to FactSet. Revenue: Analysts estimated sales to decline to $2.19 billion from $2.21 billion, FactSet data showed. Stock Reaction: Through Monday, Mattel has lost 37% of its value this year. That makes it the fourth biggest decliner in the S&P, which rose 1.5% during the same period. Hasbro’s shares dipped less than 1%. Key points: Investors are eager to hear how Mattel plans to replace the upcoming loss of its Disney Princess license, which also includes Cinderella and The Little Mermaid dolls. They also want to hear from Richard Dickson, who returned to Mattel this year as chief brands officer after a stint at Nine West parent Jones Group. Dickson was credited with revitalizing Barbie before he left for Jones. An update also is expected regarding Mega Bloks parent Mega Brands, which Mattel agreed to buy in February to compete with Lego. Construction toys have outpaced in an industry that’s faced increased competition from electronic gadgets. Ahead of the holiday season, the company’s biggest selling period, investors also are looking for details on popular toys and a retail game plan. Outside of fashion dolls, how Mattel plans to fix its declining Fisher-Price infant toy business will be another focus. McGowan said the label has “lacked innovation to justify” a price that’s higher than the average for infant and toddler toys. source