Overview
- Mattel lifted its full‑year adjusted earnings target to $1.27–$1.39 per share after reporting first‑quarter net sales of $862.2 million that topped the $804.7 million analyst estimate.
- The company posted an adjusted loss of 20 cents per share, which was slightly better than the expected 21‑cent loss, and it kept its annual sales goal intact.
- Adjusted gross margin fell to 45.1% from 49.6% because of higher U.S. import tariffs and a stronger dollar, and the outlook does not count any potential tariff‑refund benefit since the timing is unclear.
- Mattel deepened its entertainment strategy by buying the remaining 50% of its NetEase joint venture in China and previewing new media‑linked toys, including planned “KPop Demon Hunters” dolls later this year.
- The sales mix is shifting, with Barbie billings down 16% and Hot Wheels up 17%, highlighting growth in vehicles, games, and action figures as the company leans on franchises tied to films, licenses, and digital play.