Mattel Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did MAT Beat Earnings? Q2 2025 Results
Mattel delivered a mixed second quarter, posting a narrow earnings beat against a backdrop of softening revenue and a bruised stock price. The toymaker reported Q2 2025 earnings of $0.16 per share, edging past the $0.16 consensus estimate by 1.98%, while revenue of $1.02 billion fell short of the $1.05 billion Wall Street expected and slid 5.7% from a year earlier. The single most consequential drag was a 16% decline in North American net sales, compounded by a steep 25% drop in worldwide Barbie gross billings to $200.70 million, which management tied to retailer ordering pattern shifts. On the brighter side, adjusted gross margin expanded 200 basis points to 51.2%, reflecting disciplined cost control through its Optimizing for Profitable Growth program. Shares fell sharply following results as Mattel trimmed its full-year adjusted EPS outlook to $1.54 to $1.66 from a prior range of $1.66 to $1.72, and cut its free cash flow target to approximately $500 million from roughly $600 million, signaling cautious navigation of persistent macroeconomic headwinds.
- Optimizing for Profitable Growth program driving cost savings and gross margin expansion
- Hot Wheels growth driving Vehicles category up 10%
- Action Figures strength driving category up 16%
- International segment grew 7% with EMEA and Asia Pacific leading
- Lower inventory management costs and favorable mix improving margins
- Barbie decline of 25% weighed on Dolls category
- North America down 16% due to global trade dynamics and retailer ordering pattern timing shifts
“Our second quarter performance reflects operational excellence in the current macroeconomic environment as we continue to execute our strategy to grow Mattel's IP-driven toy business and expand our entertainment offering. We achieved meaningful gross margin expansion, grew internationally, and further progressed our entertainment slate. We are embracing technology and collaborating with world-class partners to bring our iconic brands to life in new ways to position Mattel for long-term success.”
Mattel CEO, on the earnings call
Forward Guidance & Outlook
Mattel resumed 2025 guidance with modestly lowered expectations: Net Sales growth of +1% to +3% in constant currency (prior: +2% to +3%), Adjusted Gross Margin of approximately 50%, Adjusted Operating Income of $700-$750 million (prior: $740-$765 million), Adjusted Tax Rate of 23%-24%, Adjusted EPS of $1.54-$1.66 (prior: $1.66-$1.72), and Free Cash Flow of approximately $500 million (prior: approximately $600 million). The company reaffirmed its 2025 share repurchase target of $600 million. Guidance remains subject to market volatility, global trade disruptions, and other macroeconomic risks.
MAT YoY Financials
MAT Revenue by Segment
MAT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.