Hey there, toy lovers! If you've been keeping an eye on the latest toy trends, you might have noticed that Mattel, the iconic toy company behind Barbie, is facing some challenges with their doll sales. In the most recent quarter, Mattel saw a significant 19% drop in revenue from their dolls category. What's going on with Barbie? Let's dive in and unravel the story behind Mattel's struggle to sell their beloved dolls.
The Barbie Blues: Understanding Mattel's Doll Sales Decline
The Numbers Game: A 19% Plunge
When Mattel recently disclosed its second-quarter earnings, it revealed a 19% decrease in revenue from the dolls category compared to the previous year. This decline amounted to $335 million in sales.
Behind the Scenes: Reasons for the Drop
During an earnings call, Mattel's finance chief, Paul Ruh, pointed out that the decrease in doll sales was mainly due to the lack of new Barbie product launches in that quarter. Additionally, Mattel's CEO, Ynon Kreiz, mentioned that reduced promotional support from retailers also played a role in the weak sales performance.
Hope on the Horizon: Mattel's Strategy for Recovery
A Shift in Focus: Spotlight on Other Brands
While Barbie is struggling, Mattel's other product categories are faring better. For instance, the vehicles category, driven by the ever-popular Hot Wheels, experienced a notable 10% sales growth, reaching $407 million in revenue.
Looking Ahead: Brighter Days for Barbie
Despite the current challenges, Mattel remains optimistic about the future of Barbie sales. Kreiz expressed confidence in the upcoming months, anticipating improved trends for Barbie in the second half of the year. The company plans to introduce new product innovations, forge new partnerships, and activate exciting initiatives to reignite interest in Barbie.
Responding to Market Pressures: Mattel's Strategic Moves
Financial Figures: Tracking the Numbers
Overall, Mattel reported a 6% decline in net revenue for the second quarter, amounting to $1.02 billion. The net income also saw a slight dip, falling to $53 million compared to the previous year.
Market Response: Stock Performance and Pricing Adjustments
Following the earnings report, Mattel's stock price experienced a 5% drop in after-hours trading. However, the company's stock has shown a 17% increase over the past year. In response to market challenges, Mattel decided to raise toy prices, including those of Barbies, to counteract the impact of President Donald Trump's tariffs. This price adjustment was implemented in the latest quarter.
Despite these developments, representatives from Mattel declined to comment on the situation when approached by Business Insider.
Join the Conversation: Your Thoughts Matter!
Are you a Barbie fan? How do you feel about Mattel's strategies to boost Barbie sales? Share your thoughts and engage with us – your voice counts!
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By: abharade@insider.com (Aditi Bharade)
Title: Why Mattel’s Barbie Sales Are Declining and What They’re Doing About It
Sourced From: www.businessinsider.com/mattel-struggling-to-sell-barbies-2025-7
Published Date: Thu, 24 Jul 2025 05:16:00 +0000
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