Mattel Faces a Challenging Quarter as Retail Orders Slow and Tariffs Weigh on Sales
Mattel reported weaker-than-expected earnings and revenue for the third quarter, as softer U.S. demand and tariff-related cost pressures weighed on performance. The maker of Barbie, Hot Wheels, and Fisher-Price saw net income decline to $278 million, or 88 cents per share, from $372 million, or $1.09 per share, a year earlier. Adjusted earnings came in at 89 cents per share, missing Wall Street’s estimate of $1.07. Revenue fell 6 percent to $1.74 billion, below the expected $1.83 billion.
The company attributed the shortfall largely to changes in how retailers placed orders heading into the holiday season. CEO Ynon Kreiz said the business was “challenged in the third quarter by industry-wide shifts in retailer ordering patterns,” but emphasized that orders have picked up since the start of the fourth quarter.
Sales in North America dropped 12 percent, driven by declines in the infant, toddler, and preschool categories. International markets provided a modest offset with a 3 percent increase in sales. Among Mattel’s major brands, Barbie fell 17 percent, Fisher-Price declined 19 percent, and Hot Wheels rose 8 percent globally.
Mattel has been working to counter higher input costs by raising prices on select products in the United States. The company also continues to diversify its manufacturing base to reduce dependence on China, with less than 40 percent of its product expected to be sourced there by year’s end. Kreiz said tariffs on goods from key trading partners have made that diversification a strategic priority.
Despite the challenging quarter, Mattel reaffirmed its full-year outlook, projecting net sales growth between 1 and 3 percent and earnings per share in the range of $1.54 to $1.66. Analysts see this as a cautious sign of confidence as the company prepares for the holiday selling period.
Mattel is also leaning into entertainment partnerships and content-driven merchandising. On Tuesday, the company announced a collaboration with Hasbro and Netflix tied to the upcoming animated movie KPop Demon Hunters. The two toy makers will release dolls, action figures, and playsets inspired by the film’s fictional pop group HUNTR/X, with products expected to reach retail shelves in spring 2026.
For Walmart suppliers and other brand partners, Mattel’s quarter underscores how shifting retailer inventory strategies and global trade dynamics can ripple across categories. The results also highlight the importance of supply chain flexibility, brand storytelling, and timely collaboration with major retailers.
While this quarter brought a setback, Mattel’s portfolio strength and investment in entertainment suggest that its long-term playbook remains focused on staying relevant to families worldwide—both on the shelf and on the screen.
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