Barbie manufacturer Mattel took a hit this week after its superstar doll failed to deliver. <\/p>\n
The El Segundo company behind many of the world\u2019s most iconic toys was walloped in the stock market \u2014 its shares plunged 25% Wednesday \u2014 after it announced that holiday-season sales were weak and that it expects another slow year. <\/p>\n
It was overoptimistic about how many Barbies and other products consumers would want and had to slash prices to move them, even as it grappled with higher costs from tariffs, analysts said. <\/p>\n
\u201c2025 was marked by uncertainty,\u201d Ynon Kreiz, chief executive of the company, said after earnings were unveiled Tuesday.<\/p>\n
While Mattel\u2019s Hot Wheels were hot, and its party card game Uno attracted new fans, Barbie has been struggling. Mattel\u2019s Fisher-Price line, which makes educational toys for infants, toddlers and preschoolers, also lagged. <\/p>\n
The doll and its many variants have been losing momentum since her latest 15 minutes in the spotlight following the 2023 hit movie \u201cBarbie.\u201d This year, Mattel says it will increase its focus on making more digital games and toys tied to movie franchises. <\/p>\n
Last year, its net sales were about $5.3 billion, down 1% from the year before, according to the company\u2019s unaudited financial statements<\/a>. Its projection for this year also disappointed investors. The company lost close to $1 billion in market value as investors dumped its shares. <\/p>\n The movie that was the fun half of the \u201cBarbenheimer\u201d summer<\/a> took in close to $1.5 billion at the box office and rejuvenated buzz around the 60-something Barbie, sparking more than $150 million in sales from dolls and other related products. At the time, it seemed to validate the toymaker\u2019s strategy of turning its legacy brands into modern media properties, with live-action films. It has not been able to repeat that success yet, and that failure has weighed on its earnings.<\/p>\n Despite efforts to create buzz around the Barbie brand \u2014 including a diabetes Barbie<\/a> and an autism Barbie<\/a> \u2014 gross billings for Barbie products slid 11% last year, following a similar decline in 2024. <\/p>\n Mattel on Tuesday said it plans to double down on its strategy to become, as its CEO called it, an \u201cIP-driven play and family entertainment business.\u201d That means it wants to make more money from video games and movies. <\/p>\n Though toys are foundational to Mattel, the company said it is trying to broaden its reach by focusing more on content licensing and digital games, which tend to be more profitable. <\/p>\n Mattel has long worked with Disney to make princess dolls and has partnered with Netflix<\/a> to make toys inspired by characters from the 2025 movie \u201cKPop Demon Hunters.\u201d The K-pop-inspired products will ship in the spring, and Mattel expects them to boost doll sales.<\/p>\n