In Quarter 3 of 2018, American Girl plummeted again- down 31% from last year. Surprise! Not really. Even Mattel was expecting this! Don't worry, they have hope for AG. Here's some interesting bits from the Quarter 3 results conference call.
This is what Mattel's CEO said about AG as a whole:
"As expected, American Girl gross sales continued to decline, down 31% in constant currency. Despite the decline, increasing Net Promoter Scores indicate the brand health remains strong with its existing consumer base. We will be executing retail activations and live events in the fourth quarter with a 40-city theatrical touring program to help promote new consumer acquisition. As I discussed last quarter, this brand is in a multiyear turnaround and we expect to dedicate 2019 to making the fixes necessary to deliver improved performance thereafter."
And this is what was answered when an investor asked about American Girl's turnaround plan:
"So, we've decided that we are obviously hard at work at American Girl. This will be a multiyear turnaround. The focus of the turnaround, as you know, is obviously on the omni-channel experience that we have, catalog, e-commerce and our own stores, evaluating our price/value equation, enhancing customer relationships through improved data management and CRM and most importantly as well, modernizing the brand's content, which with new talent in the organization and the new partnerships that we've established in the content arena, we're very confident that we're going to be able to address that quickly.So, one to watch, absolutely. We are working feverishly on driving the turnaround for that brand. Despite all of the challenges, Net Promoter Scores remain high, loyalty remains high. Our conversion of the customers we do have is very impressive and so we still are very confident in the DNA of the brand and we'll work hard to turn that around."
Hopefully that turnaround works!