Mattel's American Girl brand turns 40, dolls enter a new era
CNBC • • business
Key Points:
- American Girl, celebrating its 40th anniversary, faces challenges from digital competition, changing play habits, and a more cost-conscious customer base, with annual sales dropping from $600 million a decade ago to around $200 million in 2023.
- Despite a significant decline, the brand has recently seen five consecutive quarters of sales growth, signaling stabilization rather than a full recovery, while Mattel, its parent company, struggles with overall sales and profit forecasts.
- High price points and competition from lower-cost alternatives have narrowed American Girl’s customer base amid inflation, as children increasingly prefer digital entertainment like tablets and gaming over traditional toys.
- American Girl’s emotional and nostalgic appeal remains strong, with loyal customers valuing its historical characters, inclusive
