In spite of the massive success of the Barbie film, Mattel’s UK sales have not improved.
- Mattel’s turnover decreased to £145.5m from £162.4m in 2022, according to recent reports.
- The company’s pre-tax profits slightly increased from £8.2m to £10.4m.
- Challenging macro-economic conditions have impacted Mattel’s quarterly results and sales.
- The Barbie movie’s success did not significantly influence early 2023 sales despite later boosts.
In spite of the widespread success of the Barbie movie in 2023, Mattel’s UK sales did not experience the anticipated uplift. Recent reports have revealed a decline in the company’s turnover to £145.5 million for the year, down from £162.4 million in 2022.
According to its latest accounts filed with Companies House, the Berkshire-based division witnessed a slight increase in pre-tax profits, rising from £8.2 million to £10.4 million during this period. Mattel, renowned for its Polly Pocket, Fisher-Price, Thomas & Friends, and Hot Wheels brands besides Barbie, has confronted significant headwinds amid a challenging economic landscape.
A statement from the board highlighted that Mattel’s 2023 results were considerably affected by a challenging macro-economic environment. Volatility and timing of retailer inventory movements throughout the year significantly impacted the quarterly results.
It was observed that consumer demand was lower than expected during the 2022 holiday season, causing retailers to reduce replenished orders as they managed their inventory. These factors led to a decline in net sales during the last quarter of 2022 and elevated inventory levels heading into 2023, which unfavourably impacted sales in the first half of the year.
Nevertheless, an adjustment in shipping patterns to align with historical trends resulted in meaningful growth during the second half of 2023. This was coupled with benefits from the success of the Barbie movie.
Ynon Kreiz, Mattel’s chairman and CEO, noted, “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.”
Despite the success of the Barbie movie, Mattel’s UK sales faced challenges due to economic factors and inventory issues.
