Mattel Q3 Sales Fall; Third Straight Miss

Mattel reported third‑quarter net sales fell 6% to $1.74 billion and net income declined to $278 million, marking the company’s third straight quarter of revenue and earnings misses. The weakness was concentrated in dolls — led by a double‑digit drop in Barbie — and Fisher‑Price, while Hot Wheels and some action‑figure franchises saw gains. Executives and analysts blamed industry‑wide shifts in retailer ordering and uncertainty around President Trump’s international tariff policies, which raised costs for China‑reliant toymakers and prompted retailers such as Walmart and Target to delay orders. Inventories rose to about $827 million from $737 million a year earlier, adjusted gross margin slipped to roughly 50.2%, and adjusted operating income and EPS declined, increasing near‑term risk. Retailers accelerated orders at the start of the fourth quarter, giving Mattel confidence for a stronger holiday season, though the earnings miss pushed shares lower in after‑hours trading.