The sales of the toy manufacturer Mattel have grown strongly in the third quarter and exceeded analysts’ forecasts thanks to the boost in doll sales derived from the success of the film Barbie and the increase in turnover of its Hotwheels cars, according to the results published this Wednesday by the company. “Consumer demand for our products increased in the quarter and we continue to outperform the sector. Our results have benefited from the success of the Barbie movie, which became a global cultural phenomenon and marked a key milestone for Mattel,” admitted Ynon Kreiz, president and CEO of Mattel, in the results release.
The company snapped a streak of declining sales in the third quarter. Sales increased by 9%, to 1,919 million dollars (about 1,815 million euros at the current exchange rate). Even so, as they had been falling sharply in the first half of the year, turnover still decreased by 6%, to 3,820 million, in the accumulated amount of the first nine months of the year. The company hopes that Barbie will continue to be a sales driver in the Christmas quarter, essential in the turnover of toy companies.
The movie Barbie, directed by Greta Gerwig and starring Margot Robbie, it is the highest grossing of 2023 and has become a great promotion for Mattel’s star toy. It is the highest-grossing film in Warner Bros. history, with around $1.4 billion accumulated worldwide. Mattel, as co-producer, is entitled to a portion of the film’s revenue. Mattel wants to bring more of the company’s brands to cinemas or television screens and is already developing films based on its Hot Wheels cars, among others.
In the third quarter, global doll gross sales amounted to $884 million, up 27% from the same period last year. The company attributes the increase to the growth of Barbie, Disney Princess and Disney Frozen, and Monster High. With 605.1 million, Barbie accounts for two-thirds of doll sales and its gross sales increase by 16%, but this indicates that the rest of the products in that segment have grown even more strongly. The group’s second most important brand, Hot Wheels, has also grown more, 22%, whose sales reached $454.8 million in the quarter. In contrast, the company has suffered sales declines at Fisher Price, and the division of action figures, construction sets and other games.
“We are very well positioned competitively and we expect to gain market share in the fourth quarter and throughout the year,” said Kreiz. Gaining share is not the same as growing. The traditional toy business has been on the decline for several years, displaced by video games, electronics and other products.
Despite the growth in the third quarter and good omens for the holiday season, Mattel still expects full-year sales to remain stable around the $5,435 million recorded in 2022. The company has slightly raised its earnings per share forecast adjusted, from 1.10-1.20 dollars to 1.15-1.25 dollars, but that has not been enough for investors, so the company’s shares have reacted strongly downwards on the stock market.
The operating result was 474 million dollars, which represents an increase of 82 million, although adjusted for non-recurring items it would grow by 108 million, up to 506 million. Profit for the quarter has fallen 50%, to $146 million, but this is due to a provision of $212 million for the valuation of deferred tax assets abroad. Adjusted profit would grow 32%, according to the company.
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