Monday, April 21, 2014

Mattel Sales Are Down

So while surfing the web, way past my bedtime, I came across an article about how Mattel suffered a 5% drop in sales, 14% of that was on Barbie alone. Mattel lost 11 million dollars in their first quarter this year. This also comes after a really bad holiday season where most of their inventory was put on discount to try to sell it off.

So during the whole MGA/Mattel, or Bratz vrs. Barbie debacle, I admit, I wanted to see Mattel go down, or at least be knocked off their pedestal. I felt it was unfair of them to get away over something so petty and something I feel they had no right to. I felt they were afraid of competition and wanted a monopoly on fashion dolls. But now to see they are suffering, even with their popular Monster High and Ever After High doll lines, it is quite sad. I loved Barbie as a kid and while I think competition is good, it would be sad to see this company continue to fail. Now I know they could come up with the next "big thing" and be in the black again, and I know a lot of companies are suffering, it just surprised me to see they are suffering. However, with my experience in retail, the first few months of the year are always slow and then things pick up. Usually the first quarter is hard for everyone, from my retail experience. So things should start looking up for Mattel, especially since the acquired Mega Brands which makes Lego's rival Mega Bloks, and they have launched a toy gun line called BOOMco. So things may start to look up for them this year.

I guess I found this all interesting because I really do have a passion for getting into the toy business, and I wonder how much a struggle it would be. Clearly there is way more competition out there, and you need to have the "it product" and keep up on trends, and it's really any company's chance to be the big dog in the industry. I just wonder if my dreams are too big and will set me up for a major burn in the end, or am I just letting self-doubt tap on my shoulder? I don't know why I am even bothered by any of this now. It's a ways off for now, but researching toy companies isn't a bad step to see how the industry is looking. I need to try to find some stats on other toy companies. If Mattel slipped in sales, does that mean someone took top dog position? Or has everyone slipped in sales but Mattel still reigns supreme? Guess that's something new to google...after a few hours of sleep that is.

But yeah, I just wanted to post about this since it is kind of doll related. Not sure who may have found this interesting, but I just figured if the company that is the main supplier of a lot of our dolls is suffering, what does that mean for collectors down the line? Will they have to cut costs more? Will we get cheaper quality dolls? Will lines be cut? Is Barbie in trouble of becoming a thing of the past? Inquiring minds want to know. And on that note I am off guys. I will talk to you again soon. Until then, take care. Bye for now.


  1. I understand your sentiment...but I think you can't look at Mattel, or just the percentages down, alone. A quick look at Hasbro's first quarter says that, yes, they are up...but only 2%, which is statistically insignificant (and it's less than had been expected.) Even with Hasbro's "gain" and Mattel's "loss," Mattel still made about $267 million *more* than Hasbro in the same period--a period which was only 4 months. (I can't figure out how to convince Google to show me where MGA's earnings report might be.) So, it may be a bit early to say Mattel is "suffering' =) (Furthermore, shame on that article for not presenting any of this additional information, because it *does* lead to people assuming that this means Mattel Is In Trouble. Bad reporter. Bad.) --DollsAhoy

    1. Thanks for the additional info Andrea. You are so right, that the article did make it see like it was all doom and gloom for Mattel, which had me wondering. It seemed they were losing their footing as the top toy company. I haven't had a chance to research other companies so your info is greatly appreciated. Now you have me super curious about MGA and even Spin Master. I will still have to look into it and post again if I find anything of interest.


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