Overview
- Net sales came in at $1.74 billion versus $1.83 billion expected, with adjusted EPS of $0.89 versus $1.07, and adjusted gross margin slipping to 50.2% from 53.1%.
- North America sales fell about 12% year over year as retailers shifted to direct shipping and delayed inventory commitments closer to the holidays.
- Mattel reaffirmed full-year guidance for revenue of $5.43 billion to $5.54 billion and EPS of $1.54 to $1.66, pointing to accelerating U.S. orders and a stronger holiday quarter.
- Brand results were mixed, with global Barbie down 17% and Fisher-Price down 19%, while Hot Wheels rose about 8%.
- Management cited cost and tariff pressures and said less than 40% of production is targeted to be sourced from China by year-end, as it also announced a Netflix licensing deal with products slated for spring 2026.