Barbie Dolls Down; Hot Wheels Up

There is still the potential for global trade dynamics in the broader economy to prompt general uncertainty regarding consumer demand in the back half of the year. But we believe we are well positioned to grow.

Mattel Chief Executive Ynon Kreiz, after the company announced slightly lower earnings expectations for the year due to economic uncertainty.

Why It Matters: The popular toymaker reported an overall drop in sales (to retailers) and slightly lowered its sales forecast, citing the uncertainty over the impact of tariffs. In the latest three-month period, Barbie dolls sales dropped 19% year-over-year, but “vehicle sales” (think Hot Wheels) increased by 10%.

Despite these lower sales, the company remains optimistic: “At the same time, consumer demand has held up better than expected. Kreiz said that the toy industry grew throughout the first half of the year, boosted by both higher volumes and prices. While it is still early, Mattel feels good about the coming holiday season, as internal research shows that shoppers intend to spend the same or more than last year, he added.” (WSJ)

BTW — the Holiday Barbie is already released!

Learn More: Mattel Dials Back Full-Year Outlook, ‘Feels Good’ About Holiday Season (WSJ Gift Link)

Tariff Uncertainty Hurts Toy Sales In Q2, Hasbro And Mattel Reports (Forbes)

Image Credit: Mattel