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Thursday, Sep 29, 2022
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Mattel Sales and Profits Droop

Mattel Inc. remained profitable during the third quarter despite an 8 percent decline in worldwide sales, the company reported Thursday.

The firm’s sales decline happened in part because of a steep drop in sales of the El Segundo toy maker’s signature Barbie brand.

The company reported net income of nearly $332 million (97 cents a share) for the quarter ending September 30. That’s down 22 percent from net income of $423 million ($1.21 a share) for the same period last year.

Mattel reported net sales of more than $2 billion for the quarter, down from $2.2 billion one year prior.

Barbie sales fell 21 percent during the quarter. Among Mattel’s other key brands, Hot Wheels sales rose 5 percent while sales of its Fisher-Price and American Girl brands respectively fell by 16 and 7 percent.

The fall of Barbie sales is not the only challenge Mattel faces in selling toys marketed to girls. The company will lose the right to sell toys in the popular Disney Princess line next year and Chief Executive Bryan Stockton acknowledged a need to replace those products, possibly with similarly themed toys.

“We know girls love the princess play pattern. We have deep success with it,” Stockton said in a conference call with investors. “We’ll share these ideas with you as we get closer to their execution.”

The company reported earnings before markets opened. Shares of Mattel were down 54 cents, or almost 2 percent, to $30 in early trading on the NASDAQ.

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