Children's Day: Sales of Barbie dolls in the first quarter fell by 40%

On the occasion of Children's Day, we took a look at how our children's favorite companies are doing on the stock exchanges. Toy makers are struggling with the effects of high inflation and rising costs. In the first quarter of this year, Barbie sales fell by as much as 40 percent. Sales have fallen in Nerf guns, Play-Doh and Peppa Pig toys. A Nintendo game sells well "The Legend of Zelda: Tears of the Kingdom" and card games "Magic: The Gathering".

Toy makers on stock exchanges

On the world's stock exchanges we will find many companies producing toys and other products beloved by our children. We will buy many of these things as gifts for Children's Day. Today we will try to see how selected companies are doing, using the wide range of information that public companies must provide.

The most famous toy company is of course Lego, the company was founded in 1932 in Denmark, and since 1958 it has been producing blocks in their current form. He also co-manages amusement parks - Legoland. However, Lego is not a public company, so we do not have the opportunity to invest in its shares and participate in its growth. However, there are many interesting alternatives on the market.

Actions of the manufacturer of Barbie dolls

One of them is Mattel – manufacturer of the legendary Barbie dolls. The company's shares have fallen 21% over the past year. The company recorded record share prices a decade ago, today they are valued at almost 60 percent. lower. In the first quarter of this year, the company recorded 21 percent. sales declined, resulting in a loss of 24 cents per share. The company is struggling with rising costs caused by inflation and falling orders. Due to the rising prices of raw materials and labor costs in the last year, it had to increase the prices of its products. The results of the first quarter were strongly affected by high stocks of large retailers, who additionally built them just a year ago. Across major product lines, Barbie sales fell 40 percent, while Hot Wheels toy car sales rose 1 percent. Despite losses in the first quarter and a similar forecast for the second, the company plans to achieve earnings per share of $ 2023 in 1,17 (vs. $ 1,25 in 2022).

Hasbro - manufacturer of toys and games

This company also cannot count the past year as successful. The company's shares have lost as much as 12 percent in the 28 months, while they have gained the same amount over the last decade (28 percent). The company is now worth about half of what it was at its peak before the outbreak of the coronavirus pandemic. It posted a loss of 16 cents a share in the first quarter. The company noted an increased demand for digital games, with a simultaneous decline in consumer interest in traditional toys. After a large increase in sales during the pandemic, the company is now experiencing declines in toy sales related to spending restrictions in front of consumers. Sales have fallen in Nerf guns, Play-Doh and Peppa Pig toys. By as much as 16 percent. on the other hand, revenues from the sale of the collectible card game "Magic: The Gathering" increased.

CHECK: How to invest in gaming? [Guide]

Nintendo in a bull market and with growing sales

The bull market on the Japanese stock market does not pass by Nintendo – a well-known producer of games and consoles. The company's share price has increased by 12% over the past 4 months. while within a decade it achieved a spectacular increase of 472 percent. However, the company is also struggling with sales declines, during the reporting year ending March 2024, the company plans to sell 15 million Switch consoles, while the year before it was almost 18 million. The Switch went on sale in March 2017, which means that it has been on the market for over 6 years without any major changes and may slowly start to be considered obsolete. However, the company has announced that it does not plan to launch a successor in the current fiscal year. The premiere of "Super Mario Bros" turned out to be a great success (world premiere on April 5, 2023, in Polish cinemas from May 26). And also the premiere of one of the most anticipated games this year, "The Legend of Zelda: Tears of the Kingdom" (May 12, 2023). In the fiscal year ending March 2023, the company earned $3,73 billion, down 15 percent year on year. Every year. The Management Board forecasts that profits will fall by 11% this year.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.