‘Barbie’ Receives Devastating News After Huge Live-Action Movie Buzz
The Barbie Movie Creates Magic at the Box Office, but Mattel Faces Challenges in the Toy Aisles
The “Barbie” blockbuster movie has captivated audiences and achieved great success at the box office. However, Mattel, the parent company of the iconic doll, is preparing for the impact it will have on toy sales.
Surprisingly, Mattel Inc. reported better-than-expected sales and a profit during the second quarter. However, global sales of Barbie to retailers, excluding adjustments, declined by 6 percent in the quarter ending on June 30. This decrease can be attributed to promotional efforts being shifted to coincide with the release of Barbie’s first live-action film.
During an earnings call, Mattel executives informed analysts that sales have improved in July and they anticipate the movie will have a long-lasting positive effect on the brand.
The film, which broke opening weekend records, garnered worldwide attention for the doll and boosted the company’s shares in the past month. Mattel launched an extensive marketing campaign with over 100 brands promoting the movie. However, the full benefits of these tie-ins may take some time to materialize, especially as consumers remain cautious about spending on toys.
Ynon Kreiz, chairman and CEO of Mattel, expressed his satisfaction with the company’s increased free cash flow and market share. He also emphasized the significance of the Barbie movie release as a milestone in the company’s history.
This movie release coincides with Mattel’s transformation into an intellectual property house under Kreiz’s leadership. “Barbie” is just the first of 14 planned live-action movies in collaboration with major studios.
In the second quarter, Mattel generated $27.2 million in net income, or 8 cents per share, compared to $66.4 million, or 18 cents per share, in the same period last year. Sales declined by 12 percent to $1.09 billion from $1.23 billion due to reduced toy orders from retailers amidst economic uncertainty.
Analysts had predicted a loss of 3 cents per share on sales of $1 billion.
Anthony DiSilvestro, the chief financial officer of Mattel, assured that the “retail inventory correction” is now behind them.
In the North America segment, net sales and gross billings decreased by 18 percent during the second quarter. Gross billings, which reflect sales to retailers before adjustments, for the doll category reached 1 million worldwide, representing a 10 percent increase compared to the previous year. This growth was primarily driven by Disney Princess, Disney Frozen, and Monster High, partially offset by a decline in Barbie sales.
Despite the unexpected profit in the quarter, Mattel maintained its financial outlook for the full year, projecting flat performance compared to the previous year and an adjusted profit per share between $1.10 and $1.20.
After-market trading saw a 2 percent decline in Mattel’s shares on Wednesday, following a 15 cent increase to $21.32 per share.
Jeremy Goldman, Principal Analyst at Insider Intelligence, commented, “While the Barbie blockbuster didn’t happen in Mattel’s Q2, its takeover of pop culture shows the huge potential its IP has. It also speaks to Mattel’s ability to work with key Hollywood players to bring its properties to life in a media-savvy manner.”
The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.
The post ‘Barbie’ Gets Terrible News Following Massive Live-Action Movie Hype appeared first on The Western Journal.
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