Courtesy of Warner Bros.
- Greta Gerwig's "Barbie" movie pushed up sales for the iconic doll, Mattel execs say.
- Mattel's CEO said the movie had broadened Barbie's fan base and boosted revenues.
- Global gross billings in the quarter were up 14%, but this wasn't enough to offset poor performance in the first half of 2023.
Greta Gerwig's "Barbie" blockbuster helped boost sales for the plastic doll following a poor performance in the first half of the year.
Mattel CEO Ynon Kreiz told investors during the company's earnings call Wednesday that the movie had broadened Barbie's fan base. Barbie revenues had been boosted by box-office earnings, the movie-related toy line, and consumer-product partnerships, as well as purchases from adult collectors, he said.
"The Barbie movie, Mattel's first major theatrical release, became a global cultural phenomenon, breaking numerous box office records and becoming the highest grossing film of 2023," Kreiz told investors.
"The movie was a showcase for the cultural relevance of our ability to attract and collaborate with top creative talent and our demand creation capabilities at a global scale."
Kreiz described the movie as a "milestone" for Mattel's entertainment business and said it showed the value of the company's intellectual property, showing the potential for future Mattel movies. "There is no question that the success of Barbie repositions Mattel is an important player in Hollywood," he said.
In the three months ending September 30, the Barbie brand made $605.1 million in global gross billings, a 14% jump from the same period in 2022 on a constant currency basis.
Gross billings represent amounts invoiced to customers and don't include the impact of sales adjustments, such as trade discounts.
North America made up around 58% of Barbie's total gross billings, and saw a much bigger rise — gross billings were up 26% to $349.9 million in the quarter.
But this wasn't enough to offset the sales decline in the first half of 2023. Global gross billings were down 6% in the year to September compared to the same period in 2022.
Mattel CFO Anthony DiSilvestro told investors on Wednesday that Mattel's direct movie participation, movie-related toy sales, and consumer products was expected to generate more than $125 million in sales, noting that the majority of which was reflected in its third-quarter results.
Kreiz previously said that that Barbie's range of movie-related toys and products had sold out "very fast." As well as releasing a soundtrack, Mattel said that it had entered into more than 165 consumer-product partnerships tied to the movie, with collaborations with brands including Airbnb, Bumble, Forever 21, Crocs, and Bloomingdale's.
The movie has created a "halo effect" for Barbie, with the impact on sales expected to last for years, Mattel execs told investors in July.
Barbie hit first the shelves in 1959, though creator Ruth Handler — portrayed by Rhea Perlman in the movie — faced backlash from Mattel's team when she first proposed her idea for a fashionable doll based on an adult, rather than a child.
In total, Mattel posted $1.92 billion in global net sales for the quarter and $473.9 million in operating income, increases of 7% and 17% respectively on a constant currency basis.