Last Year’s Barbie Bump Now A Barbie Slump For Mattel

Mattel has lowered its income forecast for nan year, successful ample portion owed to a 17% diminution successful gross billings for Barbie merchandise during nan 3rd quarter.

The Barbie marque was up against reliable comparisons to past year’s 3rd quarter, erstwhile Mattel reaped nan lion’s stock of what was estimated to beryllium a $150 cardinal bump successful revenues owed to nan occurrence of nan Barbie movie.

The crisp driblet successful Barbie billings caused Mattel to downgrade its full-year nett income forecast to level to down slightly. The institution antecedently had forecast that 2024 nett income would beryllium comparable to 2023’s $5.44 billion.

However, its erstwhile guidance for afloat twelvemonth net remains nan same, owed to higher profit margins and successfully cost-cutting.

Mattel reported aft nan marketplace closed Wednesday that nett income for nan 3rd 4th were $1.84 billion, down 4% from nan aforesaid play past year, beneath analysts expectations. Mattel hit net expectations, pinch adjusted net per stock of $1.14, up from $1.08 per stock successful nan 3rd 4th of 2023.

The somewhat much antagonistic outlook for full-year income didn’t scare investors Wednesday. They sent Mattel’s banal up much than 4% successful aft hours trading.

The stock, which had closed down 1.82% for nan time Wednesday, astatine $17.78, was up 4.6% astatine $18.60 astatine 7 p.m.

Mattel Chairman and CEO Ynon Kreiz told investors successful a convention telephone to talk nan financial results that nan institution expected that Barbie income would beryllium down pursuing nan anterior year’s surge.

“Coming into nan 4th we ever knew location would beryllium a reliable comp comparative to nan anterior year, which benefited from nan occurrence of nan Barbie movie,” Kreiz said. On nan affirmative side, he said, nan institution offset nan effect of that comp done beardown gross separator performance.

“Our equilibrium expanse continued to fortify and free rate travel was up significantly,” Kreiz said, noting that nan company’s capacity was “in statement pinch our priorities this twelvemonth to turn profitability, grow gross margin, and make beardown rate flow.”

While nan wide dolls class was down 14%, including nan 17% driblet successful Barbie, nan vehicles class was up 12% and nan action figures, building sets, games and different toys class was up 2%.

“Mattel’s capacity successful Q3 was mostly successful statement pinch expectations,” James Zahn, Editor-In-Chief astatine The Toy Book, said successful an emailed reply to questions.

“The vehicles portfolio continues to turn pinch double-digit gross billing increases, which shows nan powerfulness of brands for illustration Hot Wheels and Matchbox,” Zahn said.

“I do deliberation nan 14% dip successful dolls was a spot much than anticipated,” Zahn said. “While nan institution called retired declines successful Barbie, I’m funny if American Girl, which joined nan dolls portfolio this twelvemonth aft being reported connected its ain for galore years, is weighing connected nan category.”

Mattel; executives said during nan telephone that they are optimistic astir nan vacation season. Zahn said Mattel has a number of imaginable vacation hits this year, including a Barbie item.

“The Mini Barbieland postulation is poised to do large business,” Zahn said. “At 2.99 to $9.99, Mini Barbieland is affordable and collectible, making it a awesome gift. Kids tin practically build a vicinity connected nan tabletop and not break nan bank,” he said.

The caller Fisher-Price woody statement and nan Imaginext Star Wars statement besides are doing well, Zahn said,. In addition, nan Fisher-Price Rockin’ Record Player “is 1 of my favourite items this fall, and it’s getting immoderate awesome user buzz,” he said.

In nan telephone Wednesday, Kreiz reiterated what he has said passim nan year, that for Mattel and nan artifact manufacture successful general, 2025 will spot artifact income return to growth.

Zahn agrees. “I deliberation existent maturation will return successful 2025, alongside what I deliberation mightiness beryllium 1 of nan strongest merchandise lineups for nan full manufacture successful caller years.” he said.