Mattel has reported a surprising jump in quarterly sales, with more growth hoped for in the holiday season, as retailers rushed to stock shelves with toys for parents ready to buy things for their children, Reuters reports.
The pandemic, with its months of lockdown earlier this year and continuing virtual schooling for children in many states, has grown a need for parents to continue to entertain their children. That has led to rises in toy and board game sales, Reuters writes.
And Mattel is taking advantage of the fact that inventories from before the pandemic have run low by now, resulting in more sales to retailers and a 10 percent jump in the toy maker’s third quarter sales. That marks the biggest increase the company has seen in a decade.
NPD research says the demand will likely keep going up as families with a lot of money to spend do their exponential amounts of holiday shopping for the year. Mattel Chief Executive Officer Ynon Kreiz said the demand was so great that the company was unsure it would even be able to meet the demand because of supply challenges.
“We cannot be certain we will fully meet the surge in consumer demand,” Kreiz said on a call with analysts, as quoted by Reuters.
But he said the company expected Barbie play houses and fashion dolls to be some of the best-selling items this year. Barbie gross sales rose 29 percent to $532.2 million, marking the brand’s largest quarterly sales since 2003, Reuters writes.
TikTok, the popular social app among mostly younger Americans, has been a driver for toy sales, PYMNTS writes, as social media influencers key children into what toys are the hottest on the market. Influencers, according to NPD Group’s consumer tracking service, were the fourth-most cited reason a toy purchase was made. In the pandemic age, with play dates canceled, that number is likely going up.