Barbie revenue falls 9% in third straight quarterly slide

Barbie sales dropped by 9% during Mattel’s most recent fiscal quarter, a decline reported by the toy company on Thursday. This marks the third consecutive quarter where the iconic figure has seen reduced revenue. It is also the ninth consecutive drop in sales since the release of the 2023 film starring Margot Robbie.

The downturn is part of a wider shift in consumer habits. Circana retail data shows that overall doll sales decreased by 4.6% in the first half of 2026. Families are purchasing games and squishy toys at higher rates, reducing the market share available for traditional dolls. Mattel, based in El Segundo, California, had previously relied on Barbie to drive growth. Seaport Research noted that the brand generated sales increases in 14 of the 18 quarters between 2019 and 2026.

Mattel adjusted its product line in response to parent feedback regarding the doll’s proportions. The company introduced figures with varied body types, skin tones, and hair colors. Seaport Research toy analyst Gerrick Johnson observed that the film’s casting choices may have complicated this effort. “Casting Margot Robbie as Barbie, I think, reinforced the blond hair, blue-eyed stereotype Mattel had worked so hard to overcome,” Johnson said. The movie itself had generated nearly $1.5 billion at the box office and more than $150 million in direct product sales, but that momentum has since faded.

Mattel’s total doll revenue for the quarter rose by 4% to $703 million. This increase was driven primarily by merchandise from the Netflix series KPop Demon Hunters. The company reported that these new dolls are selling out in both online and physical retail locations. The success of the new line offset the financial impact of the Barbie decline.

Retail experts identify squishy toys as the current top sellers in the category. Brands like Schylling’s NeeDoh are frequently unavailable due to high demand. Slime, plush items, and board games are also seeing strong sales. These trends indicate a clear preference among children for interactive and sensory play items over static figures.