Barbie blockbuster movie fails to boost sales at Mattel
The huge success of the Barbie movie in 2023 failed to boost the sales of toy giant Mattel in the UK, it has been revealed.
The Berkshire-headquartered division of the US group posted a turnover of £145.5m for the 12 months, down from £162.4m in 2022, according to newly-filed accounts with Companies House.
However, its pre-tax profit nudged up from £8.2m to £10.4m over the same period.
As well as Barbie, Mattel’s brands include Polly Pocket, Fisher-Price, Thomas & Friends and Hot Wheels.
‘Challenging’ environment hits Barbie owner Mattel
A statement signed off by the board said: “Mattel’s 2023 results were impacted by a challenging macro-economic environment, with quarterly results significantly affected by the volatility and timing of retailer inventory movements throughout the year.
“Consumer demand was lower than expected during the 2022 holiday season and occurred later in the fourth quarter of 2022, which caused retailers to reduce replenished orders as they managed their inventory.
“These factors contributed to a decline in net sales during the fourth quarter of 2022 and elevated retailer inventory levels entering 2023, which had an unfavourable impact on net sales in the first half of 2023.
“However as shipping patterns realigned with historical trend there was meaningful growth in the second half of 2023 coupled with benefits deriving from the success of the Barbie movie.”
The results for Mattel’s UK arm come after the wider group posted net sales of $5.44bn (£4.15bn) for the same financial year, flat on a reported basis and down one per cent on a constant currency basis.
Its operating income also fell by $114m (£87m) to $562m (£429.1m) over the same period.
At the time Ynon Kreiz, chairman and CEO of Mattel, said: “2023 was a milestone year for Mattel.
“We extended our leadership in our key toy categories and gained significant share overall, achieved extraordinary success with the Barbie movie, and further strengthened our financial position.”