**Barbie Movie’s Strong Opening Not Expected to Impact Mattel’s Financial Results**
Mattel’s film adaptation of the iconic Barbie doll had a successful opening last weekend, but it is unlikely to have a significant impact on the company’s near-term financial performance. Directed by Greta Gerwig and starring Margot Robbie, the Barbie movie has already generated $356.3 million in global theater ticket sales. While this news has boosted Mattel’s market valuation, analysts predict that the toymaker’s overall sales will decline by approximately 19% to $1 billion in the second quarter.
**Toy Sales Slump Due to Pandemic**
Mattel, along with other toymakers, is currently facing a slump in sales. The COVID-19 pandemic led to increased toy purchases as parents and retailers stocked up on entertainment options for children at home. However, with the situation improving and consumers pulling back, retailers now have excess inventory and have been reducing toy prices.
**Wide Range of Barbie Partnerships**
Despite the decline in toy sales, Mattel has managed to secure partnerships with various brands, such as Gap Inc. and Ruggable, totaling 100 collaborations. However, the revenue from licensed products only contributes a fraction to the company’s overall earnings. Thus, Mattel still heavily relies on sales of its own toys to drive financial results.
**Expected Revenue from the Barbie Film**
According to analyst Drew Crum from Stifel Financial Corp., the Barbie film is projected to generate approximately $100 million in revenue for Mattel this year. This includes $75 million in toy sales, $13 million from product licensing, and $11 million from the film itself. The movie was financed and released by Warner Bros. Discovery Inc. in partnership with Mattel.
**Positive Impact of the Barbie Film on the Brand**
Although the Barbie film is rated PG-13 and may limit toy sales to some extent, it is expected to create a “halo effect” on the Barbie brand. Analyst Stephen Laszczyk from Goldman Sachs believes that the movie, along with the associated marketing and media attention, will contribute to a 1.7% increase in Barbie sales, reaching $1.52 billion this year. Laszczyk expects this growth to occur mostly in the second half of the year.
**Mattel’s Future Film Adaptations**
Following the success of the Barbie movie, Mattel plans to develop film adaptations of its other iconic toys, including Hot Wheels. However, while there have been reports of a Hot Wheels film arriving in 2025, Mattel has clarified that no official release date has been scheduled as of yet.
In summary, while the Barbie movie’s strong opening is certainly positive news for theaters and Mattel’s entertainment ambitions, the overall impact on the toymaker’s financial results is expected to be limited. Mattel is facing a decline in sales due to the pandemic and is heavily reliant on its own toy sales. However, the Barbie film is projected to generate a significant amount of revenue and create a positive brand impact. The success of the movie has also prompted Mattel to consider future film adaptations of its popular toy franchise.
GIPHY App Key not set. Please check settings