Barbie Movie Success Boosts Mattel's Quarterly Sales Despite Industry Challenges

Exceptional performance of Barbie movie leads to a 7% quarterly sales increase for Mattel, boosting annual earnings forecast despite overall sluggishness in toy industry and 7% decline in company's stocks post earnings release.

The success of Mattel's 'Barbie' movie played a significant role in the company's 7% increase in sales and boosted earnings per share to $1.08, outperforming consensus expectations of 86 cents. It led Mattel to raise the year's earnings forecast to between $1.15 and $1.25.
Revenue generated from the Barbie movie contributed approximately $125 million to Mattel's coffers. This figure includes sales from dolls and related merchandise, and movie earnings. A large majority of this revenue was realized in Q3.
Overall, Mattel's doll sales, driven largely by Barbie, surged 24% in constant currency, and sales of Barbie alone were reported to have risen by 14%. Meanwhile, Hot Wheels sales also experienced a boost, marking an increase of 22% from the same period last year.
Despite the positive report and sales growth, Mattel's stocks dropped more than 7% immediately after the earnings release. The toy industry had a challenging year, with overall sales lower than previous years.
CEO Ynon Kreiz sees the success of the Barbie movie as a testament to Mattel's potential in Hollywood and beyond. He believes it has expanded Barbie's fan base and showcased the potential value of all of Mattel's toy properties. Kreiz anticipates the Barbie movie to continue driving sales for several forthcoming years.