As sales of Barbie decline, toymaker Mattel turns to more motion pictures
“Mattel” is reaffirming its commitment to expanding beyond the toy industry following the incredible success of the Barbie movie. Despite a 12% decline in sales for the three months ending in June, the California-based company remains optimistic about its future endeavours. Other Mattel brands like Barney, Hot Wheels, and Polly Pocket are also poised to make appearances in upcoming Hollywood films.
Chief Executive Ynon Kriez expressed his enthusiasm for the Barbie movie’s impact, stating that it represents a significant moment for Mattel and showcases the cultural significance of their “Intellectual Property (IP).” While it has yet to be announced whether the company will directly profit from the Barbie movie, Mattel has already released a soundtrack album and secured over 165 consumer product partnerships related to the film.
Despite a nearly 60% decrease in net income compared to the same period last year, Mattel still managed to surpass Wall Street’s expectations. This performance led to a boost in the company’s shares of almost 16% in the past month. However, after the earnings report was released, shares dipped by 1.8% in extended New York trading.
The Barbie movie, featuring Margot Robbie and Ryan Gosling, delves into the identities of the beloved children’s characters Barbie and Ken. CEO Ynon Kriez has ambitious plans to create a “Mattel universe,” inspired by the success of Disney’s Marvel universe, known for its numerous blockbuster movies featuring iconic characters like Iron Man and Captain America.
In addition to Barbie, Mattel’s roster of popular brands includes Bob the Builder, Thomas the Tank Engine, and Uno. Despite challenges in the toy market, Mattel remains dedicated to expanding its brand reach and leveraging its IP for broader entertainment opportunities.
Despite recent setbacks, Mattel is determined to build upon the momentum gained from the Barbie movie’s success and explore new avenues of growth and profitability outside of traditional toy sales. The company’s willingness to embrace opportunities beyond the toy aisle underscores its ambition to create a lasting and diverse impact in the entertainment industry.
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