Kidscreen » Archive » Hot Wheels Drives Mattel’s 40% Sales Increase in Q2

Mattel reported a 40% increase in net sales in the second quarter, driven by growth in gross billings across all categories, with the vehicle category showing particular strength. Overall, the toyco had sales of $1.02 billion in the last quarter.

Global vehicle segment gross billings reached $266.3 million, a 68% increase over the same quarter in 2020, and the largest increase in the second quarter of any Mattel category. The Hot Wheels brand alone earned US$227.4 million, an increase of 67% over last year.

Classic car brand Matchbox, which launched a new line in March, and a line of Mario-themed vehicles (under a licensing deal with Nintendo) also contributed to the category’s growth.

In particular, vehicles have made huge gains due to the resurgence of impulse purchases in stores, said the CEO of Mattel Ynon Kreiz on yesterday’s results call.

Mattel also took steps to expand its vehicle toys beyond the shelves this year, releasing its first set of non-fungible tokens (NFTs), which also played a role in vehicle category performance, added Kreiz. The company rolled out three unique NFTs for Hot Wheels on its Mattel Creations platform in June, and Kriez said it plans to explore other NFT opportunities for its brands throughout the year.

While vehicles came out on top, Mattel saw increases in all of its categories. Dolls, a permanent high earner, rose 51% to $394.7 million. Barbie led the way, raking in US$291.3 million, a 46% increase from Q2 2020.

Toyco’s infants, toddlers and preschoolers category grew 15% from the same period in 2020 to US$229.4 million, with Fisher-Price and Thomas & Friends making the most of the work. These two brands collectively generated 18% more global gross billings this quarter, reaching US$207.8 million. And figures, building sets, games and other categories soared 32% to $258.2 million.

In contrast to its success in the second quarter of 2021, Mattel saw a 15% drop in global gross sales in the second quarter of last year, compared to the same period in 2019. Its biggest brands, including Hot Wheels and Thomas & Friends, all contributed to this decline. .

In its Q2 2021 report, Mattel reported worldwide gross billings, in contrast to last year’s focus on gross sales. Gross billings represent amounts billed to customers and do not include the impact of sales adjustments such as trade discounts. Mattel has chosen to use Gross Billings to compare its aggregate, brand, and geographic results to highlight meaningful trends in its business.

Going forward, Mattel will be working on producing more content for its brands, including the upcoming Polly Pocket movie with MGM and a Barbie feature film set to hit theaters in 2023.