BREAKING: Mattel’s Barbie sales have plunged by 19% in the latest quarter, raising alarms over the toy giant’s performance. In a shocking announcement on July 26, 2023, the company revealed that its dolls category revenue fell to $335 million compared to the same period last year.
The decline is attributed to fewer new Barbie launches, leaving the iconic doll struggling to maintain its market presence. During the earnings call, Mattel’s new finance chief, Paul Ruh, stated that the drop in sales was “primarily due to fewer new Barbie product launches,” highlighting a significant shift in consumer interest.
CEO Ynon Kreiz added that “lower associated retailer promotional support” also negatively impacted sales. The company reported an overall net revenue decline of 6%, totaling $1.02 billion for the second quarter.
Despite the challenges faced by the dolls category, other Mattel brands performed better. The vehicles category, driven by Hot Wheels, saw a 10% increase in sales, reaching $407 million. Kreiz expressed optimism about the second half of the year, stating, “In the dolls category, we’ll see improving trends with Barbie… new product innovation, more partnerships, and activations later in the year.”
Mattel’s stock dropped nearly 5% in after-hours trading following the announcement. However, the stock is still up approximately 17% over the past year, indicating investor confidence despite the recent downturn.
In an effort to combat rising costs, Mattel announced in May that it would be increasing prices on its toys, including Barbies. This decision was influenced by tariffs imposed during the Trump administration. Kreiz confirmed that the price hikes were implemented in the latest quarter, though he assured that 40% to 50% of their products in the US would remain priced below $20.
The implications of these sales figures are significant, as they reflect changing consumer preferences and the competitive landscape of the toy market. As Mattel navigates these challenges, all eyes will be on the company’s upcoming product launches and promotional strategies to revive Barbie’s sales.
Stay tuned for more updates on this developing story as Mattel looks to turn around its fortunes and reinvigorate its flagship brand.
