As expected, the loss of revenue from Toys R Us looks to be taking its toll on the toy world. Mattel has posted a 14% drop in sales for the Second Quarter of 2018, forcing the toy maker to further trim its workforce. They will be cutting over 2,200 non-manufacturing jobs as well as closing their manufacturing plants in Mexico. Overall, about 22% of Mattel’s work force will be eliminated. Last year they announced $650 million cost savings plan, which saw them close their New York City headquarters. While sales for brands like Barbie (up 12%), Hot Wheels (up 21%), and Jurassic World were strong, other high profile brands such as Monster High, Disney’s Cars, and American Girl all took major hits.
From CNN Money:
The vast majority of the layoffs are back-office and support roles, the company said. On a conference call with analysts, Mattel CEO Ynon Kreiz said the company performed a comprehensive “bottom-up review” to preserve the company’s sales-generating and creative capabilities. He said he hopes the company can realign resources toward high-performing toys, improving online sales and developing better toy franchises for the future.
After Low Q2 Sales, Mattel Cutting 2,200 Jobs
Well if they could get their multiverse figures in stores they might actually have sales.
Well it was a long time coming, but......they do seem to be improving their products.
I am shocked that their Barbie products did better while the American Girl didn't.
Mmattel looks to be banking of their DCEU and investing in those figures instead. They look good, now does the public realize that....and willing to invest.
I think I will....but that means less Marvel Legends.
Sad, but predictable.
Removed political posts.
Damn, what a terrible domino effect the TRU closing is having!
I can see a few of the those American Girl Doll stores closing in short order.
Hard to believe,Jurassic world sold great in my stores. Toysrus going under hurt a lot of companies. I think there will be more bad news on the smaller companies. Mattel can weather this storm.....I hope. Though,this makes a future hasbro bid a bit more real.
At least Hasbro is still doing well, and NECA seems to be bouncing back with new retail deals. But Mattel got F'ed in the A.
You cannot deny that Mattel has no idea how to properly distribute their products.
Another Mattel line that exists but actually doesn't is Halo. Halo is a multi billion dollar brand and is even more poorly distributed than DC.
I feel for all the people that lost their jobs and the dramatic decline of a major company, but I hope this shakes them into getting their sh** together.
You cannot deny that Mattel has no idea how to properly distribute their products.
Another Mattel line that exists but actually doesn't is Halo. Halo is a multi billion dollar brand and is even more poorly distributed than DC.
I feel for all the people that lost their jobs and the dramatic decline of a major company, but I hope this shakes them into getting their sh** together.
It's especially prevalent as Garret Sander (creator of Monster High and one of the head line designers for most of its run) has left Mattel as of June of this year, after having been with the company for nearly fifteen years. Whether he left of his own volition or Mattel let him go, I don't know, but without him there any more (and a lot of the other design team members having moved on, either within the company or elsewhere), I doubt Mattel will do much to continue Monster High, at least in the immediate future. Their marketing of the line and its tie-in merchandise (particularly the animated films and the web series) has fallen flat to the point where it's nonexistent. Through poor decision making, they cut off one of their strongest lines at the knees.
(I don't know what's going on with DC Super Hero Girls, since aside from the basic dolls, almost all of their new product is only found online for both the doll lines and the action figures, but I just today learned that they're already retooling the line with Lauren Faust at the helm, so I have no idea where that's gonna go)
Looking at Jurassic World for example, the scale it's in and how well it's doing, it would be smart to consider doing a DCEU line and CW Series line that's comparative to that in cost too(especially because of cross play!). Part of the reason action figures aren't as dominant in the market is because of the cost.
But it's no secret Hot Wheels and Barbie are what keep Mattel afloat. It's always been that way.
And Halo is billion dollar brand, but the figures never really had much of a strong sales market outside of mega construx. The figure line does about as well as other collector game centered things, though the roleplay toys do a little better.
The TRU hit is what's causing this mostly because of the order volume TRU did compared to other outlets. As well as the back debt of TRU not being able to pay the stuff it put on credit so to speak, and the money Mattel used to help bail TRU out now never going to get repaid.
I bet this is why they started dabbling in MOTU again. If they are hurting that much, maybe they should sell the whole brand outright to NECA and also relinquish the DC master license while they are at it.
A boy can dream.
Exactly! The way the handle the Dc license is frustrating. It’s like they don’t give a shit about it unless they’re needing money. To be honest thou the recent reveals and Batwoman wave look great if you can find them
MOTU is staying in house, it's one of those few things they can make with no licensing fees. Like Barbie, Max Steel, Matchbox, and Hot Wheels. MOTU will make a comeback though as new media develops. Right now She-Ra stuff is likely in the works as the new netflix toon is shaping up to be as big a hit as Legendary Defender is.
The DC license is in a transitional state, but a new 4'' line may come out of it to go with Multiverse comic stuff now. Thanks to Jurassic World's line scale, the market data now supports trying that again in a better cost efficient way to keep figure cost down to boost volume sales.
Multiverse 6'' is here to stay though and has made some massive strives forward to improve the figures. The new ones of those are looking awesome.
Keep reading: Mattel Cuts 2,200 Jobs - Page 2
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