Why Mattel Now Has A Problem With Barbie

Barbie shaper Mattel took a deed this week aft its superstar doll grounded to deliver.

The El Segundo institution down galore of nan world’s astir iconic toys was walloped successful nan banal marketplace — its shares plunged 25% Wednesday — aft it announced that holiday-season income were anemic and that it expects different slow year.

It was overoptimistic astir really galore Barbies and different products consumers would want and had to slash prices to move them, moreover arsenic it grappled pinch higher costs from tariffs, analysts said.

“2025 was marked by uncertainty,” Ynon Kreiz, main executive of nan company, said aft net were unveiled Tuesday.

While Mattel’s Hot Wheels were hot, and its statement paper crippled Uno attracted caller fans, Barbie has been struggling. Mattel’s Fisher-Price line, which makes acquisition toys for infants, toddlers and preschoolers, besides lagged.

The doll and its galore variants person been losing momentum since her latest 15 minutes successful nan spotlight pursuing nan 2023 deed movie “Barbie.” This year, Mattel says it will summation its attraction connected making much integer games and toys tied to movie franchises.

Last year, its nett income were astir $5.3 billion, down 1% from nan twelvemonth before, according to nan company’s unaudited financial statements. Its projection for this twelvemonth besides disappointed investors. The institution mislaid adjacent to $1 cardinal successful marketplace worth arsenic investors dumped its shares.

The movie that was nan nosy half of nan “Barbenheimer” summer took successful adjacent to $1.5 cardinal astatine nan container agency and rejuvenated buzz astir nan 60-something Barbie, sparking much than $150 cardinal successful income from dolls and different related products. At nan time, it seemed to validate nan toymaker’s strategy of turning its bequest brands into modern media properties, pinch live-action films. It has not been capable to repetition that occurrence yet, and that nonaccomplishment has weighed connected its earnings.

Despite efforts to create buzz astir nan Barbie marque — including a diabetes Barbie and an autism Barbie — gross billings for Barbie products slid 11% past year, pursuing a akin diminution successful 2024.

Mattel connected Tuesday said it plans to double down connected its strategy to become, arsenic its CEO called it, an “IP-driven play and family intermezo business.” That intends it wants to make much money from video games and movies.

Though toys are foundational to Mattel, nan institution said it is trying to broaden its scope by focusing much connected contented licensing and integer games, which thin to beryllium much profitable.

Mattel has agelong worked pinch Disney to make princess dolls and has partnered pinch Netflix to make toys inspired by characters from nan 2025 movie “KPop Demon Hunters.” The K-pop-inspired products will vessel successful nan spring, and Mattel expects them to boost doll sales.

This week, it announced a woody to create and marketplace toys tied to nan Teenage Mutant Ninja Turtles franchise, which is scheduled to person a caller movie adjacent year. It tin besides expect a jump successful liking astir its toys connected to nan Masters of nan Universe franchise and Matchbox brand, some slated to person movies this year.

“Success successful our artifact business will thrust occurrence successful entertainment, and occurrence successful intermezo will thrust greater occurrence successful toys,” Kreiz said. “We are looking to afloat capitalize connected this virtuous cycle.”

The institution virtually doubled down connected 1 of its biggest bets connected integer games.

Mattel announced plans to walk astir $160 cardinal to get nan different half of mobile games workplace Mattel 163, a associated task betwixt Mattel and nan Chinese net and video crippled institution NetEase.

The workplace has released 4 games based connected Mattel’s intelligence spot since it was established successful 2018.

Mattel plans to make much “games based connected Mattel IP that thrust sustained engagement for fans,” Kreiz said successful a statement.

The acquisition will temporarily effect Mattel’s bottommost statement but is intended to “accelerate maturation successful apical and bottommost lines successful 2027 and beyond,” Kreiz said connected nan call.

For some, Mattel’s large plans to diversify distant from toys haven’t been successful capable to spark assurance that nan institution tin propulsion it disconnected this year.

Morningstar expert Jaime Katz said Mattel’s integer strategy has not panned retired successful nan decade since institution activity started touting it.

“Every twelvemonth we’re expecting nan adjacent twelvemonth to beryllium a maturation year,” Katz said. “It looks now for illustration we’re going to person different twelvemonth wherever it’s stuck.”