Barbie: Toy maker Mattel looks to more movies as sales fall

Mattel is reaffirming its commitment to expanding beyond the traditional toy market following the huge success of the Barbie movie. The California-based company reported a 12% decline in sales for the three months ending in June. However, despite the drop in sales, Mattel remains optimistic about its future prospects.

The company’s various brands, such as Barney, Hot Wheels, and Polly Pocket, are set to be featured in upcoming Hollywood films, adding to their efforts to expand beyond just toys. The success of the Barbie movie has encouraged Mattel’s CEO, Ynon Kriez, who sees it as a pivotal moment for the company, showcasing the cultural impact of their Intellectual Property (IP).

While Mattel has not yet disclosed whether it will directly profit from the Barbie movie, they have already released a soundtrack album and secured over 165 consumer product partnerships for the film, maximizing its potential revenue streams.

Despite a decline in net income by almost 60% compared to the previous year, the company’s quarterly earnings still exceeded Wall Street expectations. However, the announcement caused a slight dip of 1.8% in Mattel’s shares during extended New York trading.

The Barbie movie stars Margot Robbie and Ryan Gosling, and it explores the characters’ identities, aiming to create a broader “Mattel universe” similar to the success of Disney’s Marvel universe. Mattel is known for its iconic brands like Barbie, Bob the Builder, Thomas the Tank Engine, and Uno.

In addition to its sales performance, Mattel also revealed that its Chief Operating Officer, Richard Dickson, will be leaving the company. Mr. Dickson, who played a significant role in revitalizing the Barbie brand, has been appointed as the new Chief Executive of the US clothing retailer, Gap.