Mattel Reports Strong Q1, Plans Cost Mitigation Amid Tariff Uncertainty

Mattel reported better-than-expected first-quarter results, with revenue rising 2% year-over-year to approximately $827 million and a smaller-than-anticipated adjusted loss per share. The company saw growth in North America and internationally, with Hot Wheels and action figures leading category gains, while doll sales increased modestly and preschool category sales declined. Gross margin improved to 49.4%, attributed to inventory management and ongoing cost-saving initiatives, though operating losses persisted due to higher SG&A expenses. Mattel paused its full-year guidance amid macroeconomic uncertainty and evolving U.S. tariff policies, but it reaffirmed its $600 million share repurchase target for the year. In response to potential tariff impacts, Mattel is accelerating supply chain diversification, optimizing product sourcing, and considering price increases in the U.S. The company aims to increase its cost savings target for 2025 from $60 million to $80 million as it adapts to economic volatility.