The damage recorded by Mattel reached an unexpected price, as reported by the company. The first three months of this year were all about dealing with retailer order cancellations, as well as dealing with the high costs of inflation. This will reflect on the value of Barbies and other toys.
Industry companies are facing problems with the higher costs of labor, raw materials and supplies needed to produce. Last year, Mattel announced that toys, dolls and Barbies would suffer from higher market prices.
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The beginning of 2023 is really not being the best, since even Barbie's revenue percentage dropped and Hot Wheels carts did not show good percentages.
Mattel grapples with retail losses, Barbie revenue slump
In addition to last year's readjustment, margins fell by around 640 points in the first quarter of this year, relative to 40% of stock. The glut of products meant that retailers had to ditch Mattel products, which resulted in a 21% net drop in the company's sales, which amounted to $815 million.
The company's specialists imagined that the damage would be of US$ 740.7 million, as reported by Refinitiv. Executive Chairman Yon Kreiz announced that the results for the three months of this year were negative due to the high inventory of retailers and when compared to the same period of the year past.
Mattel's Barbie-only sales were up considerably, dropping to 41%, and Hot Wheels cars were up by just 1%. Mattel saw its shares lose 24 cents through March 31, while analysts thought the loss would be 19 cents in all.
It is expected that sales may improve for the remainder of the year and profit forecasts will be readjusted. For 2023, inflation is expected to be moderate.
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