Mattel Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did MAT Beat Earnings? Q1 2025 Results
Mattel kicked off 2025 with a stronger-than-expected first quarter, posting a loss of just $0.03 per share against a consensus estimate of $0.10, a beat of 70.44%, while revenue of $826.60 million topped estimates by 4.44% and grew 2.1% year over year. The outperformance was driven in large part by meaningful margin expansion, with gross margin climbing 140 basis points to 49.4% as the company wrung out lower inventory management costs and captured savings from its Optimizing for Profitable Growth program. Category momentum was broad, with Vehicles, led by Hot Wheels, generating $308.50 million in gross billings and Action Figures surging 12% to $192.70 million. Yet the headline risk overshadowing the beat was Mattel's decision to suspend its full-year 2025 guidance, citing the volatile tariff environment and difficulty forecasting holiday demand; the company confirmed plans to raise U.S. prices on select toys and accelerated its supply chain shift away from China, while lifting its cost-savings target to $80.00 million from $60.00 million for the year.
- Growth in Hot Wheels driving Vehicles category
- Disney Princess and Wicked driving Dolls growth
- Action Figures growth driving Action Figures, Building Sets, Games, and Other category
- Lower inventory management costs (obsolescence and closeouts) improving gross margins
- Savings from Optimizing for Profitable Growth program
- North America net sales up 3%, EMEA up 6%, Asia Pacific up 10%
“This was a strong quarter for Mattel, with positive performance and continued operational excellence. Our brands are thriving, our products and experiences stand out in the marketplace, and our balance sheet gives us resilience and flexibility to execute our strategy. As we navigate the current period of macro-economic volatility, we are adapting with speed, agility, and discipline. We expect not only to manage through this period but strengthen our competitive position.”
Mattel CEO, on the earnings call
Forward Guidance & Outlook
Mattel paused full-year 2025 guidance due to the volatile macro-economic environment and evolving U.S. tariff landscape, citing difficulty predicting consumer spending and U.S. sales for the remainder of the year and holiday season. The company is taking mitigating actions to fully offset potential incremental tariff cost impacts, including accelerating supply chain diversification and reducing reliance on China-sourced product, optimizing product sourcing and mix, taking pricing action in its U.S. business where necessary, rebalancing promotional activity, and accelerating cost savings under the Optimizing for Profitable Growth program with the 2025 savings target increased from $60 million to $80 million. Mattel is maintaining its $600 million share repurchase target for 2025.
MAT YoY Financials
MAT Revenue by Segment
MAT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.