Mattel Q3 Misses Estimates; North America Sales Plunge

Mattel reported weaker-than-expected third-quarter results, with revenue near $1.74 billion and adjusted EPS of about $0.89, both down year over year and below Street estimates. Management blamed tariff uncertainty and shifting retailer ordering patterns — retailers delaying orders, moving to direct shipping and relying more on Mattel to import and warehouse — and said North America sales fell roughly 11.7%. Gross margins contracted amid inflation and tariff costs, even as point-of-sale momentum was described as positive in the U.S. and internationally. Product trends showed strength in Uno, Hot Wheels, American Girl, Monster High and movie‑tie‑in toys, while Barbie and Polly Pocket cooled. Mattel reiterated its full‑year 2025 guidance, said it expects a strong fourth quarter, and is advancing a brand‑centric reorganization, new product launches and supply‑chain diversification to mitigate risks. Shares plunged in after‑hours trading and analysts warned that near‑term uncertainty means robust holiday restocking will be critical to close the year strong.