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.
Patrick T. Fallon | AFP | Getty Images
Barbie Creator Mattel released third-quarter results Tuesday after the market close that fell short of analysts’ expectations, as ongoing global tariffs continue to hamper the toymaker’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, based on a survey of analysts by LSEG:
- Earnings per share: 89 cents adjusted versus $1.07 expected
- Income: $1.74 billion versus $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. Taking into account one-time items, including costs associated with restructuring and certain product recalls, earnings per share came to 89 cents.
Net sales fell 6% to $1.74 billion, below Wall Street expectations.
This is the first time in three quarters that the toy giant has missed both profit and revenue expectations.
In May, Mattel lowered its annual financial targets and announced that it would raise prices of certain products in the United States to counter rising input costs due to tariffs imposed by the Trump administration on its main trading partners.
On Tuesday, the company released full-year guidance that called for net sales to increase between 1% and 3% and earnings per share to range from $1.54 to $1.66.
“Even though our U.S. business was strained in the third quarter by industry-wide changes in retailer ordering patterns, the fundamentals of our business are strong,” Mattel CEO Ynon Kreiz said in a statement. “Since the start of the fourth quarter, orders from U.S. retailers have accelerated significantly.”
Tariffs have put pressure on toy makers across the industry. About half of Mattel’s global toy sales come from the United States, 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 decline in the infant, toddler and preschool category. International sales increased by 3%.
Overall, sales for two of Mattel’s biggest toy brands saw declines: Barbie’s global sales fell 17% from the same quarter a year earlier, and Fisher-Price’s sales fell 19%. The company’s global sales of Hot Wheels increased 8%.
Moving forward, Mattel has focused on expanding its entertainment offerings and utilizing new technologies. On Tuesday, Mattel and Hasbro teamed up to Netflix to capitalize on the success of the film “KPop Demon Hunters” to offer dolls and other consumer products related to the film.
Mattel produces dolls, figures, accessories and playsets and is currently taking pre-orders for a three-pack of dolls featuring Rumi, Mira and Zoey, members of the fictional KPop trio HUNTR/X. Merchandise and toys from both companies will be available at retail in spring 2026.
Correction: Mattel reported net income of $278 million. A previous version of this article gave incorrect figures.