Toy companies like Mattel saw increased profits as parents bought more toys for their children.
When the pandemic began ramping up last year and adults began losing their jobs, many were forced to be more stringent with their funds, placing greater emphasis on necessities like rent and food while indulgences went by the wayside. This, sadly, included toys for children. However, now that the job market is starting to recover, Americans are starting to regain their disposable income, and thanks to the most recent third stimulus check, many were able to afford something nice for their kids.
Due to a combination of returning jobs, the holiday season, and the third stimulus check, children’s toy sales have seen a major boom in recent months. One of the largest manufacturers of toys, Mattel, which is responsible for multiple world-known toy franchises like Barbie and Hot Wheels, saw a 47% increase in sales this past quarter according to a financial report they released on Thursday.
“We are strengthening our position as a consistent leader in the toy industry,” Mattel CEO Ynon Kreiz said. “We believe we are very well-positioned to improve profitability and accelerate topline growth in 2021 and beyond.”
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While Mattel is still technically operating at a loss due to pandemic-induced troubles, their losses have narrowed considerably, especially when compared to this time last year. In April 2020, Mattel was operating at a net loss of $210.7 million, while it is currently operating at a loss of $115.2 million. Mattel’s revenue, approximately $874.2 million, also beat analyst expectations of just $684.2 million.
Barbie dolls in particular have gone a long way in keeping the company’s books balanced. “Barbie’s cultural relevance truly has never been stronger,” said Richard Dickson, Mattel’s president and chief operating officer. “We’ve been leaning into diversity, inclusivity and social impact and we’ve seen this reflected in the success of Fashionistas, which also had double-digit increases.”