Mattel continues to ride the wave of Barbie‘s remarkable success, reporting a notable 9% increase in net sales, reaching $1.92 billion in the third quarter of 2023. This surge in sales can be attributed to the popularity of Barbie dolls and Hot Wheels toys, even as the company faced profit challenges from other areas.
The company experienced a substantial 27% increase in worldwide gross billings for dolls, resulting in $885 million in revenue for Mattel during the third quarter. In the same period, vehicles, primarily driven by Hot Wheels, saw an 18% rise, bringing in $519 million compared to the previous year.
However, Mattel remains cautious about its future outlook due to headwinds affecting the global toy industry. The company anticipates that its full-year sales will match 2022 levels, totaling $5.4 billion.
Mattel attributes this cautious approach to the ongoing economic uncertainties, including inflation, which could potentially impact consumer demand, as stated in the company’s earnings release.
During the quarter, Mattel reported a net income of $146.3 million, a 50% decrease compared to the $289.9 million reported in the same quarter the previous year. Following this news, Mattel’s shares experienced an 8% drop in after-hours trading.
In the third quarter, net sales in North America saw a 10% increase, driven by the sales of various dolls, including Barbie, Disney Princess, Monster High, and Disney Frozen. Additionally, customers displayed strong interest in Hot Wheels toys, which partially offset the declines observed in action figures, building sets, and games. These trends were also reflected in international sales.
However, Mattel faced a decline in sales for its American Girl doll line, which decreased by 13% this quarter.
Mattel has set its sights on expanding its IP-driven toy business beyond the traditional toy aisle, with CEO Ynon Kreiz expressing the company’s intention to continue generating revenue from films and other entertainment products. Notably, Barbie toy sales in the United States witnessed a 25% increase for the combined months of July and August, compared to the same period a year ago, according to data from market research firm Circana, which tracks point-of-sale data for retailers. In the most recent data, Mattel reported selling $350 million worth of Barbie products in the quarter.