Mattel: not just Barbie – more films and theme parks to boost turnover

The other two divisions, however, performed well. Action Figures, Building Sets, Games & Other have confirmed their current role as drivers of growth. In the first quarter of 2025, the category recorded gross billings of 192.7 million (+14 per cent). On closer inspection, this trend proved even stronger in the second quarter, with turnover jumping by 16 per cent.

The Vehicles segment also saw growth, with turnover rising by 6 per cent and 10 per cent in the first and second quarters of 2025 respectively. In short: the first half of the financial year confirmed the polarised performance of Mattel: on the one hand, Action Figures and Vehicles are expanding; on the other, Dolls are struggling after a stable start, and Infant & Preschool is in structural decline. This divergence in business performance is, in fact, reflected in the share price’s performance on the stock market.

So far, we have looked at the first line of the profit and loss account: but what is the state of the company’s profitability? In the first quarter of 2025, the adjusted gross margin stood at 49.6 per cent, whilst in the second quarter the figure was 51.2 per cent. Operating profit (also adjusted) followed this trend: between the start of the year and the end of March, a loss of 16 million was recorded, whilst in the last quarter, a profit of 88 million was posted. In terms of the half-year results, these figures indicate, on the one hand, an increase in the gross margin compared with the same period in 2024; and, on the other, a slight decline in adjusted EBIT (-1 per cent). Once again: figures lacking a clear trajectory, reflected in the share price’s sideways movement and investors’ anticipation of a genuine turnaround in the business.

Yes, the turning point. But what are the group’s priorities for reviving the business – in a difficult market for toys? Here, amongst other things, it is worth highlighting a clear strategic shift by the company: Mattel has moved from being a simple manufacturer of dolls and toys to a company managing entertainment franchises. The focus is on enhancing the value of the brands in its portfolio (from Barbie to Hot Wheels, Fisher-Price and Masters of the Universe) through various channels: traditional toys, cinema, TV, digital media and theme parks. The idea is to build an integrated, global ecosystem around the brands, with the aim of broadening and deepening the emotional connection with fans and consumers on multiple levels. In this regard, one priority – in contrast, for example, to Hasbro – is the growth of in-house media content. On this front, last June Mattel revamped its approach to film, bringing film and TV under a single umbrella called Mattel Studios. This initiative is expected, amongst other things, to lead to the release – in June 2026 – of the ambitious *Masters of the Universe*, a high-budget live-action film (around 200 million). But that’s not all. As for theme parks, Mattel is building its first Mattel Adventure Park in Glendale, Arizona. The project has been postponed several times, but it is now expected to open by the end of 2025.

So, is it all as easy as playing with a Barbie, then? The reality is more complicated. Several analysts point out that Mattel’s approach is capital-intensive. To put it another way: in a climate where profit margins are low, the idea of a company investing money in something that isn’t its true and usual core business raises eyebrows. True! The 2023 Barbie film may be a success story. However, replicating that result is no easy feat. More generally, though, the company – and this is nothing new – is pursuing a programme to cut costs and optimise operations. The aim is to achieve annual savings of around 200 million by 2026. Of this, around 40 per cent is expected to come from cuts in general and administrative expenses. The remaining 60 per cent, on the other hand, stems from specific rationalisation measures. Last financial year, savings totalled 83 million, whilst the target – against which the company says it is on track – is to achieve savings of 80 million. Market participants – understandably – welcome this effort (1.2 per cent), which – together with improved stock management (0.6 per cent) and the product mix (0.6 per cent) – the main contributor to the improvement in the gross margin at the end of the second quarter of 2025.

Share price performance