Mattel, riding high on the pink wave of the box office success of the “Barbie” movie, plans to go all in to deliver a Barbie kind of Christmas this year.
The “Barbie” movie, from director Greta Gerwig, scored the largest opening weekend of 2023, pulling in $155 million domestically over its US opening weekend and $337 million globally.
“Barbie” is distributed by Warner Bros. Pictures, which is owned by CNN’s parent company, Warner Bros. Discovery.
Mattel CEO Ynon Kreiz declared the movie was more than a theatrical spectacle. “This was about creating a cultural event and leveraging our brands in a way that we’ve never done before,” he told analysts Wednesday during the company’s most recent earnings call.
As the movie continues to build momentum, including resonating strongly with international moviegoers and “bringing more male audiences” to see it, Kreiz said the toymaker has big plans to stretch the Barbie halo effect well beyond just the movie.
Most important for Mattel is keeping consumers entranced with all things Barbie going into the second half of the year, which includes the year-end holiday shopping months of November and December. The two months combined are a critical sales period for the toy industry.
On June 1, Mattel released a new collection of toys tied to the “Barbie” movie, which included Barbie and Ken dolls pegged to characters in the movie and a toy replica of Barbie’s three-story DreamHouse.
Kreiz said the initial movie-related products had sold out and that Mattel plans to release more products timed for the holidays. In total, he said Mattel has locked in more than 165 partnerships with brands and retailers related to the movie.
The strong movie-fueled demand for Barbie merchandise should also help give Mattel a much-needed sales boost later this year.
The toymaker on Wednesday signaled it is still wading through sluggishness in overall industry sales amid cautious consumer spending on discretionary goods.
For the second quarter, Mattel (MAT)posted sales that fell 12% from a year ago but logged quarterly profit versus expectations for a loss.
Anthony DiSilvestro, Mattel’s chief financial officer, said in a statement that retailers were still struggling with a backlog of unsold toys after last year’s holiday season.
But the good news, he said, is that Mattel expects consumer demand for its products to pick up — thanks to the “Barbie” movie — “as we enter the second half of the year and all-important holiday season.”
Given the runaway success of the movie, could a sequel be in the works?
Kreiz gave a measured response to analysts.
“We haven’t announced anything, and it’s probably a bit early to talk about sequels,” he said. “But obviously, with the success of the film ….that would invite more opportunities.”
“We expect to have more opportunities in content. And this is not just film, but also television and other areas where we continue to engage people who have an emotional connection with the brand,” he said. “This is not just about one movie. The goal was to create – to build the film franchise and continue to extend the brand in more ways, and success breeds success.”
