Mattel Forecasts Strong Earnings from 2023’s Barbie Blockbuster

The success of the Barbie movie in 2023 is not just child’s play for Mattel (MAT); it translates to substantial revenue.

Mattel’s earnings from the film, comprising both their share of box office collections and related merchandise sales, are expected to exceed $125 million this year. This was revealed by Ynon Kreiz, the CEO and chairman of Mattel, during his conversation with Yahoo Finance Live at the Goldman Sachs Communacopia and Tech Conference held in San Francisco.

The live-action film, which stars Margot Robbie as Barbie and Ryan Gosling as Ken, has been a significant hit. Directed by Greta Gerwig, the movie has astonishingly garnered over $1.4 billion globally just a month post its release.

Such overwhelming success ensures that Mattel is poised for a rewarding holiday season, especially given the increasing consumer interest around the Barbie brand. As a strategic move, Mattel has licensed the Barbie brand for a plethora of products that are now ubiquitous. An example of such a partnership is with the retail giant Gap (GPS), offering everything from Barbie-themed hoodies to pet outfits. From these sales, Mattel anticipates an impressive operating margin exceeding 60%.

Kreiz expressed his delight at the earnings, noting it surpassed their initial projections for the year. He added that the movie’s influence would likely be felt in the following years, emphasizing the longevity of such a venture. Since the film’s debut in late July, Mattel has unveiled a series of dolls influenced by the characters in the movie. One doll, representing the ‘Weird Barbie’ character portrayed by Kate McKinnon, has especially caught the public’s eye.

Industry experts believe that the wave of movie-based toys will sustain its momentum. Kreiz shared with Yahoo Finance Live about their plan to transition Barbie into a “franchise management” phase. This includes additional merchandise associated with the film for 2024 and the subsequent years.

He concluded by highlighting the broader vision of Mattel: “It wasn’t purely about amplifying toy sales. We aimed to craft a cultural phenomenon, a moment that resonates with society. And we’re confident this impact will resonate for years ahead.”

About Mattel

Mattel is a leading global toy company and owner of one of the strongest catalogs of children’s and family entertainment franchises in the world. We create innovative products and experiences that inspire, entertain, and develop children through play. We engage consumers through our portfolio of iconic brands, including Barbie®, Hot Wheels®, Fisher-Price®, American Girl®, Thomas & Friends®, UNO®, Masters of the Universe®, Monster High® and MEGA®, as well as other popular intellectual properties that we own or license in partnership with global entertainment companies. Our offerings include film and television content, gaming, music, and live events. We operate in 35 locations and our products are available in more than 150 countries in collaboration with the world’s leading retail and ecommerce companies. Since its founding in 1945, Mattel is proud to be a trusted partner in empowering children to explore the wonder of childhood and reach their full potential. Visit us online at mattel.com.

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Mattel Forecasts Strong Earnings from 2023’s Barbie Blockbuster

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