Mattel’s Barbie doll jumped on the back of Warner Bros. Pictures Barbie movie, which was released in July, seeing sales surge by 16 percent in the third quarter. Mattel attributed the sales jump to the Hollywood blockbuster, which recorded $1.4 billion globally.
Ynon Kreiz, CEO of Mattel, said their results benefited from the success of the Barbie movie which became a global cultural phenomenon and marked a key milestone for Mattel as well. Mattel, for the period ending September 30, reported a profit of $146.3 million, or 41 cents a share, down from $289.9 million, or 80 cents a share, a year earlier. And shares, as of Wednesday’s close (October 25), were up over 12 percent so far this year.
Kreiz said the toy industry is well-positioned for future growth. Mattel believes retailers are well prepared for the holiday season. “The Margot Robbie Barbie doll is selling especially well, and management expects it to be a hot toy on Christmas shopping lists.”
It should be noted that Mattel was a production partner on the movie, and receives a share of the ticket sales and streaming revenue as well. Kreiz said Mattel would see a larger benefit from the movie’s success in the second half, with its popularity driving demand for dolls and other Barbie-branded products.
Overall, the company remains tepid about its outlook as the global toy industry faces headwinds. Mattel expects its full-year sales to match 2022 at $5.4 million as the wider economy is still shaky. Furthermore, it is operating in a challenging macroeconomic environment with higher volatility, including inflation, that may impact consumer demand.