Mattel reports that Barbie sales drove the 9% increase, helping the company to its first quarter of sales growth in a year.
Mattel has announced that its sales increased by 9% in the third quarter compared with 2022, representing the first quarter of growth since last year. Net Sales in both the North American and International segments increased 10% as reported.
For the third quarter, worldwide Gross Billings for Dolls were $884m, up 27% as reported, driven by growth in Barbie, Disney Princess and Disney Frozen, and Monster High. Worldwide Gross Billings for Infant, Toddler and Pre-school were $361m, down 2% as reported, due to declines in Thomas & Friends. Worldwide Gross Billings for Vehicles were $518m, up 18% as reported, primarily driven by growth in Hot Wheels. Worldwide Gross Billings for Action Figures, Building Sets, Games and Other were $358m, down 19% as reported, primarily due to declines in Action Figures (related to 2022 theatrical releases)
The Barbie movie is the top grossing film of the year so far, earning more than $1.4bn in ticket sales globally. Talking to investors, Mattel said it expected a roughly $125m boost from movie, with much of that already realised. Other brands – including Barney, Hot Wheels and Polly Pocket – are also set to feature in upcoming Hollywood films.
Commenting on the results, Ynon Kreiz, chairman and CEO of Mattel, said: “Mattel’s strong third quarter performance reflects the successful execution of our strategy to grow Mattel’s IP-driven toy business and expand our entertainment offering. Consumer demand for our product increased in the quarter and we continued to outpace the industry. Our results benefited from the success of the Barbie movie, which became a global cultural phenomenon, and marked a key milestone for Mattel. We are very well positioned competitively and expect to gain market share in the fourth quarter and full year. I would like to thank the entire Mattel organization for their achievements, hard work, and commitment to create shareholder value.”
Anthony DiSilvestro, CFO of Mattel, added: “Our performance in the third quarter was comprehensive with topline growth, market share gains, adjusted gross margin expansion and significant free cash flow improvement. Given our year-to-date performance and expectations for a strong holiday season, we are updating our guidance for 2023 to reflect anticipated upside to our margin and bottom-line results.”