In July, the new “Barbie” movie took the world by storm. As a result, there were unprecedented box-office numbers, bubblegum pink fashion trends… And a colossal spike in sales of the iconic dolls. However, Q4 projections show that Mattel may not ride this wave of success into the holiday season…
How the New “Barbie” Movie Boosted Sales
Before the film was even released, Mattel invested in strong social media marketing. There were tongue-in-cheek trailers, fun filters, and all while leveraging nostalgia.
The new “Barbie” movie made big promises. By and large, audiences felt that it lived up to the hype — to the tune of $1.4 billion in global ticket sales.
But Mattel didn’t just cash in from the cinematic release. Their Q3 earnings report reflected that they sold 16% more toys in the Barbie line than in Q2.
It stood to reason that the blockbuster would secure the company a merry and lucrative Christmas. But there seem to be forces more powerful than movie magic…
The Barbie Bubble May Have Already Popped…
Overall, there has been a decline in toy sales over the past year.
Consumers have been cutting costs because of recent inflation and a general lack of interest in toys.
Similar brands to Mattel, like Hasbro, have been preparing for drab holiday sales for some time.
Hasbro CEO. Chris Cocks said this:
“WE HAVE A CAUTIOUS OUTLOOK ON THE HOLIDAY. WE DO NOT HAVE A REAL SOLID VIEW ON WHERE THE MARKET WILL GO.”
Likewise, Mattel’s Q4 projection is uncertain. Outside of the boost in sales from the new “Barbie” movie, their other products have been stagnant.
As of the writing of this article, the doll manufacturer’s stock is down 8%.
Does this mean this Dreamhouse was built on a house of cards?
Selling Toys is No Game
Mattel has put a lot on tiny, plastic shoulders.
Ultimately, the new “Barbie” movie allowed the company to dominate its market. The question is if they will persist through to make the most of it.
The toy giant will have to continue aggressive and creative promotion to come out the other side. We’ll only be certain once we get the Q4 earnings reports.
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