Mattel reports spike in sales thanks to Barbie and Hot Wheels
By Ramishah Maruf, CNN
New York (CNN) — Mattel is still riding Barbie’s pink blockbuster wave.
The toy manufacturer reported a 9% rise in its net sales to $1.92 billion in the third quarter of 2023, fueled by Barbie’s success and Hot Wheels toys, even while company profits faced pressure on other fronts.
Worldwide gross billings, or the amount invoiced to customers, for dolls rose 27%, bringing in $885 million to Mattel in the third quarter. Meanwhile, vehicles — mainly driven by Hot Wheels — rose 18% to $519 million compared to the same quarter a year ago.
However, the company remained tepid about its outlook as the global toy industry faced headwinds. Mattel expected its full year sales to match 2022, at $5.4 billion. The wider economy is still shaky, it said.
“The company is operating in a challenging macro-economic environment with higher volatility, including inflation, that may impact consumer demand,” the company’s earnings release said.
The company reported $146.3 million in net income during the quarter, down 50% from the $289.9 million it reported in the same quarter a year ago.
Mattel shares fell by up to 8% in after-hours trading.
Net sales in North America rose by 10% in the third quarter, driven by sales of dolls that include Barbie, Disney Princess, Monster High and Disney Frozen. Customers were also snatching up Hot Wheels toys, which partly offset the declines in action figures, building sets and games. Internationally, sales were also driven by these categories.
Mattel did have one particular sore spot for sales this quarter: American Girl. Sales of the 18-inch doll line decreased by 13%.
Mattel wants to grow its IP-driven toy business “outside of the toy aisle,” CEO Ynon Kreiz said, suggesting the company wants to continue making money from films and other entertainment products.
Barbie toy sales in the United States increased 25% for the July-August combined months compared to the same two-month period a year ago, according to the most recent data from market research firm Circana, which tracks retailers’ point-of-sale data. Mattel said it sold $350 million worth of Barbie products in the quarter.
The boom in sales isn’t surprising. The “Barbie” movie, from director Greta Gerwig, scored the largest opening weekend of 2023 and is the highest-grossing movie at the domestic box office this year.
“Barbie,” which hit theaters on July 21, is distributed by Warner Bros. Pictures — which, like CNN, is owned by Warner Bros. Discovery.
Kreiz said during a previous earnings call that the first wave of movie-related products had sold out, and that Mattel plans to release more products timed for the holidays.
– CNN’s Parija Kavilanz contributed to this report.
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