Barbie was rather more than the highest-grossing film of the 12 months, although raking in $1.4 billion worldwide was definitely spectacular. For Mattel, the blockbuster sparked a increase in Barbie toy gross sales—and helped the toymaker keep away from the sort of horrible 12 months that Hasbro and different rivals are having.
This week, Hasbro introduced it might cut nearly 20% of its staff, or about 1,100 jobs, with CEO Chris Cocks saying that “the market headwinds we anticipated have proven to be stronger and more persistent than planned.”
Hasbro, like different toymakers, has been hit exhausting by a post-pandemic slowdown, which noticed dad and mom in the reduction of on toys after loading up on them whereas staying dwelling. The corporate’s shares have fallen almost 20% this 12 months, and analysts count on its gross sales to say no by 19% this quarter—a vital one given vacation toy procuring.
The robust trade circumstances have been felt much less acutely by Mattel, due to Barbie. The film boosted gross sales of dolls, equipment, and Dreamhouses, serving to the corporate beat Wall Road’s estimates with a 9% enhance in third-quarter gross sales.
As for this key quarter, “the success of the movie will be an important contributor” to vacation outcomes, Mattel CEO Ynon Kreiz told the Wall Road Journal in October. “The movie opened the aperture for Barbie. Barbie now appeals for more fans, a broader demographic.”
The corporate did endure the trade headwinds in different classes, nonetheless, with its video games, actions figures, and constructing units all seeing gross sales declines.
Films primarily based on toys are nothing new, in fact, however the slowdown and large success of Barbie means many extra such movies will comply with, even for concepts which have been stalled or in a state of partial improvement for years. Mattel, which sees Barbie as a template, introduced earlier this 12 months upcoming motion pictures primarily based on UNO, Scorching Wheels, Magic 8 Ball, Polly Pocket, and Rock ’Em Sock ’Em Robots. Hasbro has plans for Monopoly and Play-Doh motion pictures.
And this week, Mattel said it’s growing a live-action movie primarily based on the American Lady doll line. Lindsey Anderson Beer, who will write the script, stated in an announcement: “They are historically accurate toys and accessories that feature elaborate and immersive backstories uniquely suited to bring to screen. I am so excited to tell a story that tackles the issues of girlhood in a real and compelling way.”
If that feels like a stretch, contemplate Barbie. It’s “a story about humanity—we elevated Barbie beyond a doll to an idea,” Lisa McKnight, govt vp and chief model officer of Mattel, advised Fortune.
“It’s not about selling toys, it’s about telling the best stories,” added Robbie Brenner, president of Mattel Movies. “If you’re not making something that feels out of the box and different and sticky, then you have no business making content.”
Time will inform if Mattel has come across a profitable components or if moviegoers will rapidly tire of toy-centric flicks, nonetheless good the tales.
