Cost cutting helped Mattel achieve an 80% rise in profits in the April - June quarter, despite a drop in sales and a strong US dollar.
Net profit for the toymaker was $US21.5 million, up from $US11.8 million a year earlier. Revenue fell by 19% to $US898.2 million, down from $US1.1 billionn.
Mattel boss Robert Eckert said the decline in sales was caused by slowing demand during the economic downturn and the fact that fewer toys were geared towards summer film releases.
He also said the strong US dollar affected international sales.
The BBC reports sales of Barbie dolls fell by 15%, while those of Hot Wheels, another popular toy, fell by 10%.
Despite the rise in profits, Mattel said trading conditions in the second half of the year would remain challenging.