Mattel reported its third-quarter earnings in October, prompting a negative market reaction, as the iconic toy giant’s revenue and adjusted earnings missed Wall Street’s expectations.
Company CEO Ynon Kreiz explained that changes in retailer ordering patterns in the U.S. played an important role in the sales decline and lower operating margins, reported Petr Huřťák for StockStory.
“While our U.S. business was challenged in the third quarter by industry-wide shifts in retailer ordering patterns, the fundamentals of our business are strong, with growth in consumer demand for our products across every region. Since the beginning of the fourth quarter, orders from retailers in the U.S. have accelerated significantly and our POS is growing,” said Kreiz.
Mattel’s revenue has been relatively flat since 2021, with small fluctuations (down slightly in 2022, back up in 2023, then down again in 2024), according to data from MacroTrends.
Mattel’s turnaround began when Kreiz became its fourth chief executive in four years, “inheriting a company that needed a lifeline,” writes Carly Olson for Los Angeles Times. With the “Barbie” movie, Kreiz took a strong brand in one vertical and successfully imported it to another, making this one of the “biggest corporate success stories of recent years.”
Under Kreiz’s leadership, Mattel expanded its focus to theme parks as well. In 2024, it confirmed a plan for its second theme park, before its first park even debuted. Now, it’s making more bold moves in a similar direction.
Mattel shared a plan to build five branded indoor water parks.
Mattel plans five branded indoor water parks
Mattel’s recent moves suggest the company is reinventing itself as a media and entertainment company.
By launching the “Barbie” movie and several animated Netflix series based on its brands, and now by building theme parks, Mattel is making moves similar to those of the Walt Disney Company, writes The Motley Fool.
“The Disney model leverages its much-loved brands to create products and experiences that forge an emotional connection with customers. Creating a new world is how it makes its magic. Mattel is trying to make some of that magic as well.”
In the most recent news, Mattel revealed it will open five new Mattel Wonder Indoor Waterparks, with launch dates to be announced. The parks will be developed in partnership with aquatic design firm Martin Aquatic, waterpark management firm American Resort Management, and developer I-dentity Group.
The first park is planned to be built in Orlando, Florida.
It is interesting that Mattel ventured into new parks, even though neither of its two adventure parks has opened yet.
Its first park in Glendale, Arizona, was first announced in 2021 with an opening date in 2022. This was pushed first to 2023, then to 2024, and then to late 2025. According to its official website, the opening is “coming soon.”
A second Mattel Adventure Park location in Bonner Springs, Kansas, is set to open in 2026, and another four parks are being developed, with a targeted overall completion by 2034, according to Attractions Magazine.
Each water park will feature Mattel’s iconic brands, including Barbie and Hot Wheels
“Mattel Wonder Indoor Waterparks will encompass many iconic Mattel brands that span generations of play, offering innovative water-based attractions and amenities in a dynamic new format for Mattel. We are thrilled to collaborate with these exceptional industry leaders in waterpark development to create an experience where guests can connect with their favorite brands in an entirely new way,” said Julie Freeland, VP Global Location Based Entertainment.
Related: Parents should be more worried about Mattel’s Barbie than ever
Martin Aquatic’s global portfolio spans large-scale resorts such as the award-winning Royal Caribbean’s Perfect Day at CocoCay, Universal Orlando’s Volcano Bay, and The Ritz-Carlton Naples, as well as cruise-ship water parks. The company’s role is to lead the concept-to-engineering design of the aquatic experiences.
Each park will integrate many of Mattel’s iconic brands, including Barbie and Hot Wheels, across attractions ranging from lazy rivers and wave pools to exciting water slides.
The demand for indoor water parks is growing
In April 2024, Kreiz explained that although the company hadn’t yet set the economics on the parks, it will use a “capital-light approach.”
“This is a capital-light approach where we license our brands and participate in different forms in the economics of the park and, of course, can sell product there. This is a highly accretive business line, especially given the strength of our brands,” Kreiz told Los Angeles Business Journal.
Kreiz noted that theme parks are expected to be an important growth avenue for Mattel, but that the strategy is to take strong brands that drive engagement and have a solid fan base and “capture value outside of the toy aisle in highly accretive business opportunities.”
The U.S. water-park market is expected to reach around $2.01 billion in revenue this year, and grow at a 4.21% annual growth rate (CAGR) through 2030, according to Statista.
In the U.S., there are more than 1,000 water parks, and 2023 attendance reached 85 million visitors, up by 5 million from the previous year, according to data from Market Growth Reports. The number of indoor water parks is also growing, with more than 200 facilities meeting year-round demand.
The U.S. water-park space in the US is fairly competitive, but per the projection, it appears there is more room for growth, especially within the indoor segment.
Will Mattel’s move succeed? It’s possible, as Mattel has a track record of turning bold visions, like the “Barbie” movie, into major successes.
Related: Disney World offers special annual passes for some Americans