Mattel (MAT 0. Additionally, 40%), the global toy maker behind brands Barbie, Hot Wheels, and Fisher-Price, reported its second quarter 2025 earnings on July 23, 2025.
However, The company’s results reflected mixed performance: GAAP net sales fell short of analyst expectations. However, Moreover, Revenue for the period dropped to $1.
Furthermore, 02 billion, below the $1. 05 billion estimate and down 6% from the prior year, in this volatile climate. Adjusted EPS of $0.
Additionally, 19 were unchanged year over year, topping jections of $0, given the current landscape.
The quarter was a period marked by margin imvement and selective duct strength, but also notable category and regional declines.
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeAdjusted EPS$0 (this bears monitoring). Nevertheless, 19—Revenue$1, considering recent developments. 02 billion$1. 05 billion$1. 08 billion(5.
On the other hand, Gross margin51. Operating income$88, in this volatile climate. 1 million$96 (quite telling). 2 million(8. 4%)Net income$53 (an important development). 4 million$56.
On the other hand, 9 million(6. 2%) Source: Mattel. Note: Analyst consensus estimates for the quarter vided by FactSet (this bears monitoring), in today's market environment.
Understanding Mattel’s and Strategic FocusMattel duces and some of the world’s most recognizable toys, including dolls, toy vehicles, and early childhood ducts.
Its core brands are Barbie (dolls), Hot Wheels (toy vehicles), and Fisher-Price (infant, toddler, and preschool toys).
The company sells globally, with a deep presence in both North America and international.
Furthermore, Recently, Mattel has concentrated on expanding its brand-related intellectual perty through entertainment, partnering with major film and television studios, and growing its digital offerings, in light of current trends.
Nevertheless, Key success factors for the include strong brand management, a flexible global supply chain, and the seasonal nature of toy sales—with a heavy reliance on the holiday period for annual results (an important development).
Quarter in Review: Data and Key DevelopmentsThe second quarter showed continued operational discipline, even as underlying revenue and net income tr downward, in light of current trends.
Additionally, GAAP revenue declined by 6. However, 0% from the same period in the prior year, coming in below analyst expectations.
This decline was most nounced in North America, where GAAP net sales tumbled 16% to $510. In contrast, International were a source of resilience, with GAAP net sales up 7% to $507.
Within international regions, Europe, Middle East, and Africa sales rose 11%, and Asia-Pacific sales increased by 16%.
The drop in North American sales was attributed by management to "global trade dynamics and timing shifts in retailer ordering patterns" Direct import—where retailers control shipments—also contributed to quarter-to-quarter volatility.
Furthermore, Furthermore, Cash flow highlighted pressure, as Free cash flow (non-GAAP) for the first half of 2025 (Q1–Q2) remained negative.
Negative free cash flow (GAAP) for the first half of 2025 reached $351 million, steeper than the $283 million in the same period last year, primarily driven by lower net income and higher working capital charges from increased inventory.
Category performance was mixed, exposing some structural shifts within the toy portfolio, given the current landscape.
Doll sales, including Barbie dolls, saw gross billings fall 19% to $335 (this bears monitoring). The Barbie brand specifically dropped 25 %.
Additionally, Infant, toddler, and preschool toys—anchored by Fisher-Price—dropped 25% versus the prior year's second quarter (something worth watching).
Furthermore, Vehicles, driven by Hot Wheels car toys, vided a bright spot: gross billings for Hot Wheels grew 9% to $357, in this volatile climate.
3 million, helping push the total Vehicles category up 10%, considering recent developments.
On the other hand, Gross billings for Action Figures, Building Sets, Games, and Other rose 16%, primarily driven by growth in Action Figures, given current economic conditions.
Fitability imved despite the revenue headwinds.
Adjusted Gross Margin—essentially the of sales leftover after duction and duct costs, after excluding certain one-time expenses—increased two percentage points to 51, in today's market environment.
Management credited this to cost savings initiatives, especially its Optimizing for fitable Growth gram, lower inventory-related costs, and imved duct mix, but noted that cost inflation offset some gains (quite telling).
Adjusted operating income fell to $88, in this volatile climate. Additionally, Meanwhile, 1 million, reflecting the sales pressure, while net income (GAAP) slipped 6% to $53.
Repurchases also continued, with $50 million bought back during the quarter and $210 million year-to-date, in today's financial world.
What the data shows is company saw minimal impact from new U, in light of current trends. -China tariffs so far, but warns these will affect costs from Q3 2025 onward (noteworthy indeed).
Management reiterated that it continues to actively shift duction out of China, and now sources less than 40% of global toy supply from China—well below the industry average—as of May 2025.
In contrast, It expects this to drop even further. Additionally, Leadership also said that, as tariffs begin to take effect in 2025, 40–50% of U.
Duct volumes will remain priced at $20 or less, aiming to minimize the risk to sales from higher prices.
Looking Ahead: Outlook and Key Issues for InvestorsMattel adjusted its guidance for FY2025, now expecting constant-currency net sales to grow by 1%–3%, in this volatile climate.
The data indicates that replaces its earlier forecast of 2%–3% net sales growth for FY2025. The company’s new target for adjusted earnings per is a range of $1.
66 for FY2025, cut from adjusted EPS guidance of $1, in light of current trends. 72 for FY2025.
Moreover, Free cash flow (non-GAAP) guidance for FY2025 was reduced to apximately $500 million, down from apximately $600 million.
Management said that while it expects to fully offset the direct cost of tariffs through supply chain changes and selective price increases, there is continued uncertainty in global demand and retailer order patterns, given current economic conditions.
The $600 million repurchase goal for the year remains intact.
Investors should watch for further impacts from tariffs, especially as the company implements more sourcing changes and price adjustments to counter new costs.
On the other hand, Pressures on legacy brands such as Barbie and Fisher-Price make it that new entertainment tie-ins and digital jects will be critical in sustaining momentum.
The remainder of 2025 will ly hinge on the holiday season and the company’s ability to balance price increases with consumer demand, particularly in the U (this bears monitoring).
Revenue and net income presented using U. Generally accepted accounting principles (GAAP) unless otherwise noted.