Barbie and Hot Wheels drove a very good year for Mattel.
Despite declines across much of the global toy industry, a 16% spike in fourth quarter sales led the company behind Masters of the Universe and UNO to a flat finish for 2023 with $5.4 billion in net sales fattening wallets in El Segundo.
Net sales in Q4 hit $1.6 billion as sales in North America spiked 32% over the same period in 2022. For the year, net sales in North America increased by 1%.
“2023 was a milestone year for Mattel. We extended our leadership in our key toy categories and gained significant share overall, achieved extraordinary success with the Barbie movie, and further strengthened our financial position,” says Ynon Kreiz, Chairman and CEO of Mattel. “Execution on our toy strategy was strong and we made meaningful progress in entertainment across film, television, digital, and publishing. We ended 2023 with the strongest balance sheet we have had in years, putting us in an excellent position to execute our strategy to grow Mattel’s IP-driven toy business and expand our entertainment offering. As we look to 2024, we believe we are very well positioned competitively and will continue to outpace the industry and gain market share.”
Gross billings in North America increased 1% in 2023 with growth driven by Dolls (including Disney Princess, Disney Frozen, Barbie, and Monster High) and Vehicles (Hot Wheels), partly offset by declines in Action Figures, Building Sets, Games, and Other (primarily Action Figures), and Infant, Toddler, and Preschool (primarily Fisher-Price).
There was trouble in the action aisle as Action Figure declines due to tie-ins with 2022 theatrical releases led to a decline in gross billings. Meanwhile, the declines in Fisher-Price have been attributed to soft demand for Imaginext and Baby Gear.
Starting in Q1 2024, the declining American Girl will no longer be an operating segment as Mattel integrates the business into its North American commercial organization. Looking ahead, the company anticipates 2024 sales to be comparable to 2023.
Earlier today, Mattel revealed that media vets Julius Genachowski and Dawn Ostroff have joined the Company’s Board of Directors following the departure of Todd Bradley and Ann Lewnes on Feb. 1. Ostroff most recently served as Chief Content & Advertising Business Officer at Spotify while Genachowski is a Senior Advisor at Carlyle, a leading global investment firm.
Look for more insights from Mattel in the 2024 edition of The BIG Toy Book, available Feb. 26.
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