Business
Why Mattel now has a problem with Barbie
Barbie manufacturer Mattel took a hit this week after its superstar doll failed to deliver.
The El Segundo company behind many of the world’s most iconic toys was walloped in the stock market — its shares plunged 25% Wednesday — after it announced that holiday-season sales were weak and that it expects another slow year.
It was overoptimistic about how many Barbies and other products consumers would want and had to slash prices to move them, even as it grappled with higher costs from tariffs, analysts said.
“2025 was marked by uncertainty,” Ynon Kreiz, chief executive of the company, said after earnings were unveiled Tuesday.
While Mattel’s Hot Wheels were hot, and its party card game Uno attracted new fans, Barbie has been struggling. Mattel’s Fisher-Price line, which makes educational toys for infants, toddlers and preschoolers, also lagged.
The doll and its many variants have been losing momentum since her latest 15 minutes in the spotlight following the 2023 hit movie “Barbie.” This year, Mattel says it will increase its focus on making more digital games and toys tied to movie franchises.
Last year, its net sales were about $5.3 billion, down 1% from the year before, according to the company’s unaudited financial statements. Its projection for this year also disappointed investors. The company lost close to $1 billion in market value as investors dumped its shares.
The movie that was the fun half of the “Barbenheimer” summer took in close to $1.5 billion at the box office and rejuvenated buzz around the 60-something Barbie, sparking more than $150 million in sales from dolls and other related products. At the time, it seemed to validate the toymaker’s strategy of turning its legacy brands into modern media properties, with live-action films. It has not been able to repeat that success yet, and that failure has weighed on its earnings.
Despite efforts to create buzz around the Barbie brand — including a diabetes Barbie and an autism Barbie — gross billings for Barbie products slid 11% last year, following a similar decline in 2024.
Mattel on Tuesday said it plans to double down on its strategy to become, as its CEO called it, an “IP-driven play and family entertainment business.” That means it wants to make more money from video games and movies.
Though toys are foundational to Mattel, the company said it is trying to broaden its reach by focusing more on content licensing and digital games, which tend to be more profitable.
Mattel has long worked with Disney to make princess dolls and has partnered with Netflix to make toys inspired by characters from the 2025 movie “KPop Demon Hunters.” The K-pop-inspired products will ship in the spring, and Mattel expects them to boost doll sales.
This week, it announced a deal to develop and market toys tied to the Teenage Mutant Ninja Turtles franchise, which is scheduled to have a new movie next year. It can also expect a jump in interest around its toys connected to the Masters of the Universe franchise and Matchbox brand, both slated to have movies this year.
“Success in our toy business will drive success in entertainment, and success in entertainment will drive greater success in toys,” Kreiz said. “We are looking to fully capitalize on this virtuous cycle.”
The company literally doubled down on one of its biggest bets on digital games.
Mattel announced plans to spend around $160 million to acquire the other half of mobile games studio Mattel 163, a joint venture between Mattel and the Chinese internet and video game company NetEase.
The studio has released four games based on Mattel’s intellectual property since it was established in 2018.
Mattel plans to make more “games based on Mattel IP that drive sustained engagement for fans,” Kreiz said in a statement.
The acquisition will temporarily impact Mattel’s bottom line but is intended to “accelerate growth in top and bottom lines in 2027 and beyond,” Kreiz said on the call.
For some, Mattel’s big plans to diversify away from toys haven’t been successful enough to spark confidence that the company can pull it off this year.
Morningstar analyst Jaime Katz said Mattel’s digital strategy has not panned out in the decade since company leadership started touting it.
“Every year we’re expecting the next year to be a growth year,” Katz said. “It looks now like we’re going to have another year where it’s stuck.”
Business
Erewhon opens new Southern California location
Erewhon opened its newest location in Glendale on Wednesday, marking the luxury grocer’s 14th store in Southern California with more set to open soon.
The new store, located at 520 N. Glendale Ave., includes the chain’s signature cafe and tonic bar as well as an indoor-outdoor patio space.
Known for its upscale, trendy products and high prices, Erewhon has grown into a tourist destination in Los Angeles and a hot spot for celebrities and influencers.
The Glendale location will bring Erewhon staples to trendy consumers in the area, including the beloved Strawberry Glaze Skin Smoothie, which until last year was named after the model Hailey Bieber.
Employees at the store handed out complimentary gift bags and fresh flowers during the grand opening Wednesday morning.
“This location was designed to reflect the spirit of the neighborhood while creating a welcoming space to gather, centered around wellness, connection, and a commitment to the quality standards that define Erewhon,” Erewhon President Josephine Antoci said in a statement.
The company purchased the space, which was formerly a hardware store, in 2024.
Erewhon has locations in several of Southern California’s wealthiest areas, including Calabasas and Beverly Hills. It also has stores in Venice, Manhattan Beach and at the Grove.
“Erewhon’s decision to invest in Glendale reflects confidence in our city’s economic future,” Glendale Mayor Ardashes Kassakhian said in a news release.
The grocer was founded in 1966 by Japanese immigrants Michio and Aveline Kushi — pioneers of the natural-foods macrobiotic movement — who began selling imported organic goods out of their Boston home. In 1969, the company opened its first Los Angeles location on Beverly Boulevard.
Josephine and Tony Antoci bought the company in 2011 and helped launch it to its luxury status with a cult-like following. Tony serves as chief executive while Josephine handpicks much of the store’s merchandise.
By the mid-2010s, Erewhon had become a watering hole for celebrities such as the Kardashians and the Beckhams.
The company has its eye on further expansion. A Thousand Oaks location is slated to open this August and stores in Costa Mesa and downtown Los Angeles are planned for 2027. An Erewhon cafe opened in the Los Angeles County Museum of Art’s new David Geffen Galleries earlier this month.
The Pacific Palisades location, which shut down after the wildfires last year, is set to reopen in January.
The Glendale Erewhon takes the place of Virgil’s Hardware Home Center, which opened in 1932 and closed in 2019.
Business
Volvo to pay $197 million after hidden pollution device found in California truck engines
Volvo Group North America has agreed to pay nearly $197 million to resolve allegations from California regulators that company’s heavy-duty truck engines violated California emissions standards and certification requirements.
About 10,000 diesel truck engines manufactured by Volvo were equipped with an undisclosed device, causing them to release excessive levels of smog-forming pollution across California, according to the California Air Resources Board, the state agency that regulates air pollution and greenhouse gases.
Volvo is developing a software fix to repair many of these vehicles and extend their warranties at no cost to the owners. Eligible truck owners are expected to be notified of a non-mandatory recall on these trucks next year.
CARB found inconsistencies in the Swedish automaker’s data while testing trucks with Volvo engines from model year 2010 to 2016, which resulted in the investigation and ensuing settlement.
“This case underscores why CARB’s compliance testing and strong enforcement are essential to protecting the state’s air quality and public health,” said Lauren Sanchez, chair of the state Air Resources Board. “Our responsibility goes beyond adopting regulations — we are committed to upholding them by identifying violations and holding companies accountable for meeting emissions standards.”
Under the settlement, Volvo will pay $17.5 million in civil penalties to reimburse the state for the cost of the investigation and support its vehicle-testing operations. Another $179 million will go toward investing in clean-air initiatives, such as electric vehicle incentive programs, to offset air pollution that resulted from the alleged violations.
Business
Commentary: A surge in Nevada data center construction threatens the electricity supply for 49,000 Californians
Local opposition has blocked or delayed more than a dozen huge data center projects around the country. But these Californians don’t get a vote on Nevada projects that could affect their electricity supply.
Those big data centers being built for artificial intelligence firms are in bad odor nationwide.
Seven in 10 Americans oppose projects in their local communities, according to a recent Gallup poll. More than a dozen, valued at some $64 billion, have been blocked or delayed by local opposition in recent years.
But what happens when the people directly affected by these project plans don’t get a vote?
Data centers did not influence this decision.
— NV Energy, explaining its move to end service to 49,000 California customers. But is it telling the truth?
That’s the quandary faced by 49,000 residents living on the California side of Lake Tahoe, mostly in the city of South Lake Tahoe. The surge in construction of data centers in Nevada is prompting the Nevada utility that supplies 75% of the Californians’ electricity to cut them off next year.
The California-regulated utility that carries the electricity over the state line to their homes and businesses has assured them that it will find alternative sources to protect them from losing service — but hasn’t promised that their rates won’t increase because of the transition.
“It’s like we don’t exist,” Danielle Hughes, the head of a local energy nonprofit and an advocate for the customers, told me. The crisis facing those residents is just the latest in a long line of indignities they have suffered thanks to several unique characteristics of their energy market, Hughes says.
For one thing, they are permanent residents of the community — teachers, firefighters, police, and service workers at the hotels, restaurants and resorts that bring in a tidal wave of visitors every winter. The latter, as well as vacation-home owners and renters, generate seasonal electricity demands that drive up power costs year-round.
That means that the permanent residents are in effect subsizing the visitors, even though they’re lower-income ratepayers than the generally well-heeled vacationers.
Before delving deeper into the issues for the permanent residents, let’s examine the effect of the large-scale data centers being built and proposed in Nevada, and more generally coast to coast.
Nevada has emerged as a prime location for data centers, in part due to the wide open, undeveloped acreage available for construction. More than 60 data centers have sprung up around Reno and Las Vegas, with many more slated to rise in the northern part of the state, according to a survey by the Desert Research Institute, a Nevada nonprofit.
“We’re right at the epicenter for global expansion” of data centers, observed Sean McKenna, a co-author of the report.
The existing data centers consumed 22% of Nevada’s electric generating capacity in 2024, DRI calculated. If all those under construction and on the drawing board are completed, that figure would rise to 35% by 2030. NV Energy, the Nevada utility that provides the electricity for the California side of Lake Tahoe, estimates that the electricity demand for just the 12 projects being planned would come to 5,900 megawatts — nearly three times the generating capacity of Hoover Dam.
That construction frenzy is likely to bring some of the same drawbacks that have provoked local communities to militate against data centers — not only pressure on existing electricity capacity, but also a voracious appetite for water due to the cooling needs of the computerized equipment managing the data for AI applications. Residents in the neighborhoods of data centers have also complained of incessant noise coming from their 24/7 operations.
With global warming driving up temperatures in Nevada’s semiarid and desert zones, they add, residents will find themselves in a contest with data center owners for an already inadequate supply of power in the state. DRI warns: “Local utilities and ratepayers in data center cluster regions like Northern Nevada also risk bearing the costs of subsidizing AI and computing services as power grids expand their infrastructure.”
In many communities, the result has been a vigorous and vocal backlash, including in California. They’ve packed town halls, prompted state and local political leaders to legislate limits on their growth or even to ban them.
That brings us back to the situation around Lake Tahoe.
In terms of its electric utility service, the region has long been an outlier. About 25% of its power comes from two solar farms operated by Liberty Utilities, but the rest comes from NV Energy; the reason is that it’s unconnected with the California transmission grid but accessible via a line from Nevada.
As a result, it falls into the cracks among energy regulators. Because it’s not part of the California grid, the California Public Utilities Commission has only limited jurisdiction over its service, although it has the authority to approve its electricity rates. The Nevada Public Utilities Commission doesn’t oversee the customers’ service at all, because they’re not Nevada residents.
The region is also unusual because its peak energy demand comes in the winter; most of the rest of California peaks in the summer, when air conditioners are on full blast.
Hughes and other residents have maintained that because the CPUC hasn’t modeled electricity demand for their small region, they have been paying for infrastructure that doesn’t serve them.
“We’ve been paying for assets in Nevada,” Hughes says, “without it being tracked by the state of California.”
Liberty does charge permanent residents in the Tahoe area about 2% less than the rate for part-time residents, but the discount should be much larger, Hughes says. Liberty didn’t respond to my request for comment.
Earlier this year, NV Energy informed Liberty that it would no longer serve as its wholesale energy provider after mid-May next year, and urged Liberty to make haste to secure an alternate supplier.
Liberty promised its customers in a recent statement that they “will not be left without service” as a result of the change. “This does not mean the power is shutting off,” Eric Schwarzrock, president of Liberty Utilities, said at a South Lake Tahoe City Council meeting last month, according to the news site SFGate. “Energy companies, utilities, large customers change energy supply frequently.”
Liberty and NV Energy both attributed the change to a preexisting agreement that anticipated that NV Energy would eventually cease providing power to Liberty’s customers, although their interpretations of the deal and the impetus for the change appear to be at odds.
The “long-standing agreements and planning assumptions … date back more than a decade,” NV Energy said in a May 14 statement. That was “well before data center growth became a factor,” the utility said. “Data centers did not influence this decision.”
That is, to be charitable, dubious. How do we know? Liberty said so in a March 6 letter to the California Public Utilities Commission, requesting permission to take “immediate action” to find alternative providers.
The letter stated that Liberty had expected its arrangement with NV Energy to “continue indefinitely.” During their last negotiations for an extension of the deal, however, NV Energy informed Liberty that it would cease serving Liberty on May 31, 2027, with a possible extension to Dec. 31.
“This change of stance by NV Energy was a surprise to Liberty,” the letter said. Liberty ascribed NV Energy’s decision to new “market circumstances” in the latter’s home service region. Among them: “A number of entities are seeking to add large loads such as data centers into the area.”
NV Energy says it will continue serving Liberty’s customers until Liberty secures a new supplier, even if it misses the May 2027 deadline; the ultimate deadline is Dec. 31, 2027, when NV Energy expects to complete its 350-mile Greenlink West transmission line between Las Vegas and the Reno area, part of a $4.2-billion infrastructure upgrade.
Yet that still leaves an open question that should make those customers nervous: How much will they be paying for power?
In its recent statement to customers, Liberty made only the vaguest of promises. “While no utiulity can predict the exact future cost of energy,” it said, “affordability is a primary goal” in its search for new suppliers. “With a competitive bidding process, we aim to find a cost-effective solution for your monthly bill.”
But any new supplier would have to come from outside California, because of the region’s lack of any connection with the state’s grid. And generators in nearby states face their own rising demands from data centers, drought and global warming.
The drawbacks of these massive industrial installations are beginning to be felt by their neighbors, including higher electricity prices and dwindling water supplies. They’re only going to get worse.
-
Los Angeles, Ca1 hour agoSouthern California jeweler accused of stealing $1.5 million from customers through Rolex watch scam
-
Detroit, MI2 hours agoAir France flight bound for Detroit diverted to Canada over passenger from Congo, officials say
-
San Francisco, CA2 hours agoCaltrans considering 140 mph bus that would take passengers from San Francisco to Los Angeles
-
Dallas, TX2 hours agoDallas police seek two people of interest seen leaving Deep Ellum shooting that injured five
-
Miami, FL2 hours agoInter Miami nearing deal to bring in Brazilian star Casemiro to pair with Lionel Messi
-
Boston, MA2 hours agoBoston City Council deadlocks on push to reject Mayor Wu’s $4.9B budget
-
Denver, CO2 hours agoDenver weather: More rain to end the week
-
Seattle, WA2 hours agoSeattle leaders’ proposed one-year ban on data centers met with strong support