The Mattel logo is displayed outside the headquarters of the toy company known for products like Barbie and Hot Wheels in El Segundo, California, on June 8, 2023.
Patrick T. Fallon | AFP | Getty Images
barbie maker mattel The company reported third-quarter results after the market closed on Tuesday, which fell short of analysts’ expectations as ongoing global tariffs continue to hamper the company’s North American sales.
The company’s shares fell 4% in after-hours trading.
Below is a comparison of Mattel’s third-quarter report and Wall Street expectations, based on an LSEG analyst survey.
Earnings per share: 89 cents adjusted, $1.07 forecast Revenue: $1.74 billion, $1.83 billion forecast
The company reported net income of $278 million, or 88 cents per share, for the quarter ended Sept. 30, down from $372 million, or $1.09 per share, in the year-ago period. Earnings per share, adjusted for one-time items including costs related to restructuring and certain product recalls, 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 both profit and sales expectations.
In May, Mattel withdrew its annual financial targets and announced it would raise prices on some products in the U.S. to counter higher input costs caused by the Trump administration’s tariffs on major trading partners.
The company on Tuesday issued full-year guidance calling for net sales to increase 1% to 3% and earnings per share to be between $1.54 and $1.66.
“While our U.S. business was challenged in the third quarter due to industry-wide changes in retailer ordering patterns, the fundamentals of our business are strong,” Mattel CEO Inon Kreiz said in a release. “Since the beginning of the fourth quarter, orders from U.S. retailers have accelerated significantly.”
Tariffs are putting pressure on toy makers across the industry. Kreitz said on CNBC in May that 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.
North American sales fell 12% in the third quarter, with the company’s infant, toddler and preschool categories seeing the biggest year-over-year declines. Meanwhile, overseas sales increased by 3%.
Overall, Mattel’s two biggest toy brands saw sales decline. Global Barbie doll sales were down 17% year over year, and Fisher-Price sales were down 19%. The company’s global Hot Wheels sales increased 8%.
Moving forward, Mattel has focused on expanding its entertainment offerings and embracing new technology. On Tuesday, Mattel and Hasbro teamed up. Netflix Capitalizing on the success of the movie KPop Demon Hunters, we offer dolls and other consumer products related to the movie.
Mattel manufactures dolls, action figures, accessories, and playsets, and is currently accepting pre-orders for a 3-pack of dolls featuring members of the fictional KPop trio HUNTR/X: Rumi, Mila, and Zoe. Products and toys from both companies are expected to be available in retail stores in spring 2026.
Correction: Mattel reported net income of $278 million. A previous version of this article incorrectly listed this number.
