Mattel posted a 6% drop in internet gross sales for the second quarter of 2025, reporting $1.02 billion in income as softness in North America continued to stress outcomes. The corporate pointed to a 16% decline within the area, partially offset by a 7% enhance in worldwide markets.
Regardless of the gross sales dip, Mattel’s gross margin improved to 50.9%, up 170 foundation factors, aided by price financial savings, improved stock administration, and favorable product combine. Adjusted gross margin climbed to 51.2%.
Our second quarter efficiency displays operational excellence within the present macroeconomic surroundings as we proceed to execute our technique to develop Mattel’s IP-driven toy enterprise and increase our leisure providing. We achieved significant gross margin growth, grew internationally, and additional progressed our leisure slate. We’re embracing know-how and collaborating with world-class companions to deliver our iconic manufacturers to life in new methods to place Mattel for long-term success.”
Working earnings totaled $78 million, down $5 million year-over-year. Adjusted working earnings got here in at $88 million, a decline of $8 million. Internet earnings was $53 million, a $4 decline from final yr. Mattel reviews earnings of $0.16 per share, down barely from $0.17 final yr. Adjusted earnings per share held regular at $0.19.
“Mattel’s adjusted EPS was the identical as final yr, regardless of international commerce dynamics and timing shifts in retailer ordering patterns impacting our US enterprise,” provides Paul Ruh, CFO of Mattel. “We’re assured within the energy of our model portfolio and our skill to navigate ongoing uncertainty.”
By class, Automobiles and Motion Figures have been standouts. Scorching Wheels led the cost, serving to the Automobiles section develop 10% to $407 million. Motion figures helped raise the mixed Motion Figures, Constructing Units, Video games, and Different class by 16%, reaching $264 million.
Dolls fell 19% as a result of a decline in Barbie, whereas Toddler, Toddler, and Preschool slipped 25%, impacted by Fisher-Value, Child Gear, and Energy Wheels.
Mattel resumed forward-looking steering and reaffirmed its full-year share repurchase goal of $600 million. The corporate purchased again $50 million in inventory throughout the quarter, bringing the year-to-date complete to $210 million.
The corporate will host an earnings name with analysts later this afternoon.
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