The Mattel, Inc. logo is displayed outside the headquarters of the toy company known for products including Barbie and Hot Wheels in El Segundo, California on June 8, 2023.
Patrick T. Fallon | AFP | Getty Images
Barbie-maker Mattel posted third-quarter results after the market close on Tuesday that missed analysts’ expectations as ongoing global tariffs continue to hamper the toy manufacturer’s sales in North America.
Shares of the company fell 4% in after hours trading.
Here’s what Mattel reported for its third quarter compared with what Wall Street was expecting, based on 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 September 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 certain product recalls, per-share profit was 89 cents.
Net sales fell 6% to $1.74 billion, coming in short of Wall Street’s expectations.
This is the first time in three quarters that the toy giant has missed on both earnings and revenue expectations.
In May, Mattel pulled its annual financial targets and said it would increase prices for some products in the U.S. to counter higher input costs due to the Trump administration’s tariffs on key trading partners.
On Tuesday the company issued full-year guidance that calls for net sales to increase between 1% and 3% and for earnings per share to come in between $1.54 and $1.66.
“While our U.S. business was challenged in the third quarter by industry-wide shifts in retailer ordering patterns, the fundamentals of our business are strong,” Mattel CEO Ynon Kreiz said in a release. “Since the beginning of the fourth quarter, orders from retailers in the US have accelerated significantly.”
Tariffs have put pressure on toy manufacturers industry-wide. Approximately 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 product will be sourced 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. International sales meanwhile climbed 3%.
Overall, sales for two of Mattel’s largest toy brands saw declining sales: Global Barbie sales fell 17% from the same quarter a year earlier, and Fisher-Price sales dropped 19%. The company’s global Hot Wheels sales ticked up 8%.
Moving forward, Mattel has focused on expanding its entertainment offerings and employing new technology. On Tuesday, Mattel and Hasbro partnered with Netflix to capitalize on the success of the movie “KPop Demon Hunters” to offer dolls and other consumer products tied to the film.
Mattel is producing dolls, action figures, accessories and playsets and currently is taking pre-orders for a three-pack of dolls featuring Rumi, Mira and Zoey, the 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 misstated the figure.
