Mattel, the maker of Barbie, has seen a 24% drop in quarterly profit - partly blamed on declining sales of the girls' doll.
The California-based company said second-quarter sales of its Hot Wheel cars and Fisher-Price products had also slid.
Mattel has been faced with changing fashions for toys such as Barbie, amid an increasingly vocal movement against gender stereotyping.
In May, activists from women's rights group Femen protested outside the company's 1,400 square metre "Barbie Dreamhouse" in Berlin.
In May activists from Femen 'crucified' a doll at a Barbie theme park They set fire to a crucifix with a Barbie attached to it while displaying the slogan "Life in plastic is not fantastic".
Greenpeace has also campaigned against Barbie after the company used packaging sources from Indonesia, which allegedly threatened the Sumatran tiger habitat.
Sales of the doll have now fallen for four consecutive quarters.
Mattel said its profit had also been hit by weak sales in North America, as the toymaker's revenue edged up slightly but came in below analysts' expectations.
Greenpeace launched a US campaign against Mattel using Asian packaging An impairment charge has also dealt a blow to the firm's fortunes. Details of the charge were not disclosed, but it often reflects the reduced value of an asset.
In the April-to-June quarter, net income dropped to $73.3m (£48.1m), compared with $96.2m a year ago.
Revenue for the company edged up to $1.17bn from $1.16bn as international sales grew - partly helped by increased demand for Monster High and American Girl products. The Wall Street forecast was $1.22bn.
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