Mattel’s American Girl brand turns 40, dolls enter a new era

Flagship American Girl Place You feel like you’re frozen in time at Rockefeller Center in New York City.

There’s a faint scent of vanilla in the air. Young girls run around the doll displays, carrying miniature shirts and sequined shoes. Under the sparkling chandeliers, the brand iconic red boxes line the shelves with museum-like precision. Blow dryers hum at the Doll Salon and downstairs, pink frosted cupcakes land on cafe tables in front of dolls sitting upright in miniature high chairs.

“It feels timeless,” he said. Jamie Cygielmanglobal president of dolls Mattelparent company of the brand.

But behind the scenes, the American Girl doll business isn’t what it used to be.

Like American Girl turns 40the brand is tackling more modern challenges: digital competition, changing gaming patterns and an aging, increasingly cost-conscious customer base.

“The anniversary is a risky time for American Girl and the entire doll industry,” she said. Jaime KatzAn analyst who covers Mattel Morning Star. “Children are more digital and [American Girl] The brand was in a difficult situation.”

At its peak, about a decade ago, American Girl was making multiple records. $600 million in annual sales. By 2023, annual sales had fallen to roughly $200 million; this was only a third of previous levels.

While American Girl has shrunk significantly since the mid-2010s, the brand recently enjoyed five consecutive quarters of growth. sales growth — One of the few consistent performers in Mattel’s portfolio.

“Growing from a base that’s down more than 60% doesn’t mean the brand is coming back. It means it’s stabilized,” Katz told CNBC.

Earlier this month, Mattel reported: fourth quarter sales It fell below Wall Street expectations at $1.77 billion after holiday demand was lighter than anticipated and heavy discounts put pressure on margins. Earnings per share were similarly underwhelming, and Mattel issued a statement. lower than expected snow forecast for 2026.

Mattel shares have fallen about 19% since the report on Feb. 10 and are down nearly 20% in the past year. Citi And JPMorgan Following the results, it also downgraded the stock.

“People are watching Mattel this year… waiting with bated breath because they’re spending a ton and it’s unlikely they’ll make a big profit,” Katz said.

Even before that Covid outbreak forced American Girl to cut spending retail footprint The brand, which has grown from about 15 stores in 2019 to seven locations in the U.S. today, has faced increasing competition from lower-priced alternatives at major retailers. your target “Our Generation” line.

A traditional, 18 inch American Girl usually $135Excluding accessories which can cost up to $250 bunk or $275 beach cruiser.

The show’s host, Laura Tretter, said the premium price was once a sign of quality and prestige to many parents. American Girl Women podcast. But Katz said this narrowed the customer base in an inflation-conscious environment.

“Parents are more selective about discretionary spending right now,” Katz said. “This price point [for an American Girl doll] It seems steep for many households.”

Companies, including competitors in the toy industry hasbroare grappling with how to keep kids interested in their products, especially amid uneven consumer spending and recent trade uncertainty.

“There are so many more things a child might be tempted to play with today,” Cygielman told CNBC. “There is more competition today and we have seen in the past that tariffs can impact the toy market, but we are adapting to that.”

For many kids, gaming has moved toward tablets, game subscriptions, and short-form videos.

“The definition of ‘toy’ has changed,” Katz said. “An iPad or Nintendo Switch competes directly with a doll. There’s just more demand for the same on-demand dollar.”

Overall, Mattel’s doll and preschool categories have seen steady declines over the past three quarters, even after the halo effect in 2023. The movie “Barbie”. Global baby sales fell 7% in the latest quarter, while the infant, toddler and preschool segment fell 17%.

Difficulties selling American Girl and Mattel’s Fisher Price brand have spurred activist investor Barington Capital to push the company to streamline its portfolio and boost returns in 2024, eliminating the possibility of profits. to sell brands.

“American Girl is not a big part of Mattel’s overall financial profile,” Katz said. “The question for investors, though, isn’t whether the brand is loved. It’s whether it’s strategically necessary. It was a drag on profits.”

On a recent visit, Lisa Kandoski stopped and took a look: Molly McIntire – World War II period heroine she was adorned with round wire-rimmed glasses, a navy blue argyle sweater and braids tied with red ribbons — just like the doll Kandoski said her grandmother put under the Christmas tree in 1990.

“This isn’t just a doll,” Kandoski, now 40, told CNBC, misty-eyed. “I kind of recognized Molly’s influence on me as a child. She taught me that you could be brave even when the world was scary, that you could ‘do your part’ even when I was little. She shaped who I became.”

This emotional alchemy has defined American Girl since she disrupted the doll industry in 1986. At the time, the market was dominated by fashion dolls that either reflected adulthood or rehearsed motherhood.

The original six American Girl characters—Samantha, Kirsten, Molly, Felicity, Addy, and Josefina—came with books that tackled topics rarely taught to young children, such as child labor or racism, and all the dolls received the treatment. girlhood itself as a formative stage.

“American Girl remains a moral compass for many of us,” said Tretter of the American Girl Women podcast. “I love that girls today still receive positive messages about inclusivity, friendship, and going through tough changes.”

Over time, American Girl has expanded into publishing, film and destination retail while diversifying its characters, as in 2026. “Girl of the Year” Raquel ReyesHe’s a biracial DJ and animal rescuer who helps run his family’s kafala shop in Kansas City.

Folklorist and author Justine Orlovsky-Schnitzler said the brand’s quirky seriousness became a differentiator and fostered intergenerational loyalty: “An American Girl Anthology: Finding Ourselves in the Joyful Corporate Universe“

Look no further than the Doll Hospital, where white-coated “doctors” triage patients, fit wheelchairs, perform eye exams, and apply miniature casts for doll owners of all ages.

“That’s why people keep coming back,” Orlovsky-Schnitzler said. “You’re not just buying plastic and fabric. You’re revisiting a version of yourself.”

And even if the babies stay protected In her childhood innocence, her original owners, now grown, continue to return to American Girl. podcasts, memescosplay and fanfiction.

Some give their dolls to their children. Others are buying new ones for themselves.

“There is something powerful about giving your daughter the baby you once slept next to,” Orlovsky-Schnitzler said. “It’s equally comforting to return to your youth with your own baby.”

Mattel is struggling to translate that nostalgia into broader sales growth.

Supposed “Little” consumers (adults who buy toys for themselves) have become a coveted demographic group. With end of 2024Spending on toys for adults 18 and older has surpassed spending for children ages 3 to 5, according to a market research firm. Circana. This group continued to lead the industry growth in 2025.

Mattel is increasingly trying to monetize its intellectual property through publishing, collectibles, entertainment and digital platforms. Mattel CEO on calls and discussions with investors Ynon Kreiz He said that especially mobile games and interactive platforms are promising areas.

But “nostalgia needs to translate into sustained revenue and sales growth,” Katz said. Go too far towards adult collectors and the brand runs the risk of “aging out with the original audience.” Pushing too aggressively towards digital trends “can undermine what makes it different.”

Competitors do the same. Lego, for example, continues to release more brick building sets aimed at adults flowers, art and collectibles based on millennial pop culture, such as the 1990s TV hit “Friends”

Cygielman said the 40th anniversary for American Girl offers a natural turning point to strike a balance between child and adult fans.

American Girl is streaming modernized versions of the original six characters and publishing his first book for adults Samantha Parkton and is set during his adulthood in the 1920s.

The brand is also working to keep the next generation engaged through contemporary “Girl of the Year” stories and investments in digital platforms including YouTube, TikTok and .American Girl World” Open roblox.

“Nostalgia is not the end game, it’s an entry point,” Cygielman said. “The question is how to extend that emotional equity to new platforms and new audiences.”