Rosalind Evans
The success of the first-ever Barbie movie has proven to be a golden ticket for Mattel, effectively reversing the company’s toy sales slump and marking a significant turnaround in its financial health. Mattel’s head, Ynon Kreiz, has long advocated for integrating films and television shows as a vital strategy to revitalize sales and boost the company’s market standing. “Our strategy is serving us well,” Kreiz noted, emphasizing Mattel’s competitive edge and optimistic outlook for the upcoming holiday season.
For years, the head of Mattel has been championing the power of films to revive the company’s dwindling toy sales. The latest results are a testament to this vision, showcasing a remarkable 16% increase in Barbie billings from July to September compared to 2022, attributed to the unprecedented success of Barbie’s debut film. This surge has propelled the company to experience its first quarter of sales growth in a year.
The Barbie movie, directed by Greta Gerwig and featuring a star-studded cast including Margot Robbie and Ryan Gosling, has not only topped box office charts, earning over $1.4 billion in global ticket sales but also significantly contributed to a revitalized interest in the iconic doll. “We are very well positioned competitively and expect a strong holiday season,” Kreiz affirmed, reflecting the positive impacts of the Barbie movie on the brand and the company as a whole.
Despite this triumph, Mattel has chosen to maintain its forecast for Christmas sales, signalling the company’s cautious approach in the face of prevailing economic challenges. “The company is operating in a challenging macro-economic environment with higher volatility, including inflation, that may impact consumer demand,” the company explained in its results. This statement reveals the broader market pressures that could dampen the festive sales surge.
In addition to Barbie, Mattel has disclosed plans to feature other popular brands like Trolls, Barney, Hot Wheels, and Polly Pocket in upcoming Hollywood films, further expanding its venture into the entertainment industry. The company reported a 9% rise in sales for the quarter compared to 2022, hitting a notable $1.9 billion. However, it’s worth noting that profits saw a significant dip, mainly due to an increase in expected taxes compared to the previous year.
The success story of the Barbie movie serves as a testament to the potential of films as a strategic tool in reinvigorating toy sales and shaping the future trajectory of the toy industry. The road ahead for Mattel is paved with opportunities and challenges as the company navigates a volatile economic landscape while harnessing the power of entertainment to fuel its growth and maintain its competitive edge in the market.
