Mattel revised its full-year sales forecast downward after a drop in Barbie sales contributed to weaker than expected third-quarter sales.

The toy company’s profit, however, is holding up due to stronger margins, helped by factors such as cost cuts, supply-chain improvements and lower input costs.

Mattel Inc., the manufacturer of Barbie and other popular toys, posted third-quarter profit that beat analysts’ estimates even as lower-than-anticipated sales led the company to trim its outlook for full-year revenue.