Mattel Faces 19% Drop in Barbie Sales Amid Product Shortages
URGENT UPDATE: Mattel is facing significant challenges as Barbie sales take a drastic hit, plummeting 19% in the latest quarter. The toy giant reported today that its dolls category revenue fell to $335 million, primarily due to fewer new product launches.
In a shocking revelation during the second-quarter earnings call, newly appointed finance chief Paul Ruh stated that the downturn is largely attributable to a scarcity of new Barbie offerings. Meanwhile, CEO Ynon Kreiz highlighted “lower associated retailer promotional support” as another factor contributing to the decline.
This downturn in Barbie sales stands in stark contrast to the performance of Mattel’s other brands. The vehicles product category, which includes Hot Wheels, saw a 10% increase in sales, totaling $407 million in the same period. However, overall, the company reported a net revenue decline of 6%, with total sales reaching $1.02 billion and a net income of $53 million, down $4 million from last year.
In an effort to revitalize Barbie sales, Kreiz expressed optimism, indicating that new product innovations and enhanced partnerships are on the horizon. “In the dolls category, we’ll see improving trends with Barbie in the second half, with more activations later in the year,” he assured investors.
Despite the grim news, Mattel’s stock saw a decline of nearly 5% in after-hours trading on Wednesday, yet it remains up approximately 17% over the past year, suggesting potential resilience in the long run.
In an effort to combat rising costs, Mattel announced earlier this year that it would increase the prices of its toys, including Barbies, due to the impact of tariffs. Kreiz confirmed that these price hikes were implemented in the latest quarter and noted that 40% to 50% of their products in the U.S. will still be priced below $20.
This development is critical for toy enthusiasts and collectors alike, as the future of Barbie hangs in the balance amid changing market dynamics. As Mattel navigates these challenges, consumers and investors alike will be keeping a close eye on the company’s strategies moving forward.
Stay tuned for further updates on this developing story as more information becomes available.
