Barbie Movie Reverses Mattel’s Toy Sales Slump

Mattel’s CEO has been suggesting that films will assist the company’s lagging sales for years.

The recent results from the corporation demonstrate just how much assistance is required.

Barbie billings increased 16% from July to September compared to 2022, owing to the popularity of the doll’s debut film.

The improvements were a significant reversal, assisting the company in achieving its first quarter of revenue growth in a year.

Despite the better-than-expected performance, the company maintained its Christmas sales projection, underscoring the limits of the Barbie boost and concerns that economic woes will constrain spending.

“The company is operating in a challenging macroeconomic environment with higher volatility, including inflation, which may impact consumer demand,” the company said in its earnings report to investors.

Barbie Movie Reverses Mattel’s Toy Sales Slump

Ynon Kreiz, the business’s CEO, has been pushing the corporation to invest in films and television shows to re-ignite growth, which has been sluggish in the industry since the pandemic outbreak.

He predicts This year will likely be no exception, with sales falling across the board compared to 2022.

However, he stated that Mattel was functioning well under these conditions, making inroads against competitors and increasing profit margins.

“Our strategy is serving us well,” he went on to say. “We are very well positioned competitively and expect a strong holiday season.”

Barbie Movie Reverses Mattel’s Toy Sales Slump

The Barbie film, directed by Greta Gerwig and starring Margot Robbie and Ryan Gosling, has earned more than $1.4 billion in ticket sales worldwide.

It was meant to help rekindle interest in the doll, which had seen billings fall in the year’s first half. Mattel estimated a $125 million lift from the film, with much of it already materialized.

Trolls, Barney, Hot Wheels, and Polly Pocket are other brands scheduled to appear in Hollywood blockbusters.

Mattel said revenue increased 9% in the quarter compared to 2022, reaching $1.9 billion. This was the first quarter of expansion since last year.

Profits fell considerably to $146.3 million. Much of the drop was caused by a significant increase in the company’s estimated taxes compared to the previous year.

Mattel shares fell more than 6% in after-hours trading.

SOURCE – (BBC)