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Mattel Misses Q3 Targets on North America Slump as Hasbro Raises Outlook

Retailer timing shifts pushed U.S. orders into the fourth quarter, leaving inventories elevated under tariff uncertainty.

Overview

  • Mattel reported $1.74 billion in revenue and $0.89 adjusted EPS, missing Wall Street estimates of $1.83 billion and $1.07 as shares fell after hours.
  • North America sales declined about 12% as major retailers delayed commitments and favored later domestic shipments, lifting inventories to $827 million from $737 million a year ago.
  • Brand performance diverged with global Barbie down 17% and Fisher-Price down 19%, while Hot Wheels rose 8% and Uno and American Girl showed growth.
  • Management maintained full-year guidance for 1%–3% sales growth and $1.54–$1.66 EPS, said U.S. orders have accelerated early in Q4, and highlighted efforts to reduce China sourcing to under 40% by 2025 as tariff risks persist.
  • Peer Hasbro beat Q3 estimates with $1.39 billion in revenue and lifted its 2025 outlook on strength in Wizards of the Coast and digital gaming, emphasizing differences in product mix across the sector.