Mattel (MAT) Q3 2025 earnings

Barbie maker Mattel It posted third-quarter results after the market close on Tuesday that beat analysts’ expectations as ongoing global tariffs continue to hamper the toy manufacturer’s North American sales.

The company’s shares fell 4% in after-hours trading.

Here’s what Mattel reported for the third quarter compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 89 cents were revised down from an expected $1.07
• profit: $1.74 billion versus $1.83 billion expected

In the quarter ended Sept. 30, the company reported net income of $278 billion, or 88 cents per share, down from $372 million, or $1.09 per share, a year earlier. After adjusting for non-recurring items, including costs associated with restructuring and certain product recalls, earnings per share were 89 cents.

Net sales fell 6% to $1.74 billion, below Wall Street expectations.

This is the first time in three quarters that the gaming giant has missed earnings and revenue expectations.

In May, Mattel withdrew its annual financial targets and said it would increase prices of some products in the United States to address higher input costs due to tariffs imposed by the Trump administration on major trading partners.

The company on Tuesday issued full-year guidance calling for net sales to increase between 1% and 3% and for earnings per share to range between $1.54 and $1.66.

“While our U.S. business faced challenges in the third quarter due to industry-wide shifts in retailer demand patterns, the fundamentals of our business are strong,” Mattel CEO Ynon Kreiz said in a statement. “Since the beginning of the fourth quarter, orders from US retailers have accelerated significantly.”

The tariffs have put pressure on toy manufacturers across the industry. Kriz noted on CNBC in May that nearly 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 be sourced from China.

During the third quarter, sales in North America declined 12%, with the largest year-over-year declines in the company’s infant, toddler and preschool category. Meanwhile, international sales rose by 3%.

Overall, two of Mattel’s largest toy brands saw sales decline: global Barbie sales fell 17% compared to the same quarter a year earlier, and Fisher-Price sales fell 19%. The company’s global Hot Wheels sales rose 8%.

Moving forward, Mattel has focused on expanding its entertainment offerings and employing new technology. On Tuesday, Mattel and Hasbro teamed up with Netflix To capitalize on the success of the movie “KPop Demon Hunters” to offer dolls and other consumer products related to the movie.

Mattel produces dolls, action figures, accessories and playsets, and is currently taking pre-orders for a set of three dolls featuring Rumi, Mira and Zoey, members of the fictional KPop trio HUNTR/X. Merchandise and games from both companies will be available at retail in spring 2026.