Mattel and Barbie suffer another slump
Mattel has suffered a sixth consecutive quarter of losses, owing to the downfall of its struggling Barbie brand
A lack of innovation and changing cultural sensibilities have been blamed for declining Barbie sales. The toy-maker behind the product has recently announced another round of less-than-impressive sales
Toymaker Mattel has kicked off the year by posting its sixth consecutive quarterly sales slump, again driven by less-than-impressive sales of its storied Barbie brand. The first-quarter figures show that revenue was down 2.5 percent, whereas Barbie sales suffered a 14 percent slide in the same period that, while still very much a concern, represents an improvement on last year.
The toymaker has some way to go yet before it restores Barbie to its former glory
Sales of the all-American doll make up a quarter of the group’s overall, though lack of innovation combined with changing cultural sensibilities mean that the product has struggled to find a place in today’s ever-changing market. Add to that stiff competition from what the market deems more innovative toys and Barbie’s standing has suffered a quite spectacular knock, with sales having fallen now for three straight years.
Mattel’s first quarter results come in the same month that Christopher Sinclair, formerly interim CEO and Chairman, was made permanent, and it appears that initial efforts to crack down on bureaucracy have paid dividends.
“In the first quarter, we took a number of steps to implement a rapid turnaround at Mattel,” said Sinclair in a statement. “We are already benefitting from better decision-making, alignment and enhanced accountability. And we’ve begun to refocus our culture on creativity, innovation and improving our speed to market. While we still have a lot of work to do, we’re starting to see progress with our core brands like Barbie and Fisher-Price, and I am confident we are making the changes necessary to perform better in the future.”
The toymaker has some way to go yet before it restores Barbie to its former glory, though the mere fact that first quarter results were better than expected has assured investors that the turnaround is beginning to gather momentum.
For a look at Barbie’s struggles to find a place in the modern market, read The New Economy here.
