The Mattel, Inc. logo is displayed outside the headquarters of the toy company known for products such as Barbie and Hot Wheels in El Segundo, California, on June 8, 2023.
Patricio T. Fallon | AFP | fake images
barbie maker Mattel released third-quarter results after the market closed on Tuesday that fell short of analyst expectations, as ongoing global tariffs continue to hamper the toy maker’s sales in North America.
The company’s shares fell 4% in after-hours trading.
Here’s what Mattel reported for its third quarter compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: 89 cents adjusted vs. $1.07 expected
- Revenue: $1.74 billion vs. $1.83 billion expected
For the quarter ended Sept. 30, the company reported net income of $278 million, or 88 cents per share, down from $372 million, or $1.09 per share, a year earlier. Adjusting for one-time items, including costs associated with restructuring and withdrawing certain products, earnings per share were 89 cents.
Net sales fell 6% to $1.74 billion, missing Wall Street expectations.
This is the first time in three quarters that the toy giant has missed earnings and revenue expectations.
In May, Mattel withdrew its annual financial targets and said it would raise prices on some products in the U.S. to offset higher input costs due to the Trump administration’s tariffs on key trading partners.
On Tuesday, the company issued full-year guidance calling for net sales to increase between 1% and 3% and earnings per share to be between $1.54 and $1.66.
“While our U.S. business was challenged in the third quarter by changes in retailer order patterns across the industry, the fundamentals of our business are strong,” Mattel CEO Ynon Kreiz said in a statement. “Since the beginning of the fourth quarter, US retailer orders have accelerated significantly.”
The tariffs have put pressure on toy makers across the industry. About half of Mattel’s global toy sales come from the U.S., and by the end of the year, less than 40% of Mattel’s products will come from China, Kreiz noted on CNBC in May.
During the third quarter, sales in North America fell 12%, with the largest year-over-year declines in the company’s infant, toddler and preschool category. Meanwhile, international sales increased by 3%.
Overall, sales of two of Mattel’s biggest toy brands saw a decline: Barbie’s global sales fell 17% from the same quarter a year earlier, and Fisher-Price’s sales fell 19%. The company’s global Hot Wheels sales increased 8%.
Moving forward, Mattel has focused on expanding its entertainment offerings and employing new technology. On Tuesday, Mattel and Hasbro partnered with netflix capitalize on the success of the movie “KPop Demon Hunters” to offer dolls and other consumer products related to the movie.
Mattel is producing dolls, action figures, accessories and games and is currently accepting pre-orders for a three-pack of dolls featuring Rumi, Mira and Zoey, the members of the fictional KPop trio HUNTR/X. Products and toys from both companies will be available at retail in spring 2026.
Correction: Mattel reported net income of $278 million. An earlier version of this article misstated the figure.
