Wall Street Expects Mattel Sales To Taper Off As Barbie Buzz Fades Away — Retail Bum

Mattel’s excess marketing frenzy leading up to the launch of the Barbie move is expected to boost sales for the quarter ending September 29, 2023, to $547.2 million, but Wall Street analysts do not expect the spike to last very long.

According to UBS’ Arpiné Kocharyan, the move’s release will likely have an “overall halo effect” on the Barbie franchise, with sales of consumer products representing a greater opportunity for Mattel as the move targeted an older audience.

“This might not move the needle for revenues, but could impact Mattel’s earnings, given substantially higher margin of more than 80% on royalty stream,” Kocharyan said.

The movie, which was released on July 21, 2023, made $155 million in box office sales over the weekend in the U.S. and Canada, clenching the number-one spot for the year, Reuters reported.

Despite the movie’s strong performance, analysts and marketing pundits continue to be skeptical whether Mattel’s marketing effort will actually translate into sales.

Leading up to the movie’s launch, Mattel signed hundreds of licensing agreements with brands for clothes, shoes, makeup, rugs, fast food, and even Xbox controllers. However, the company’s strong marketing push led many to…