Mattel Stock Falls On Sales Miss, Guidance Cut: Tariffs Hit Barbie

Financial Performance - Mattel reported second-quarter net sales of $1.019 billion, down 6% year-over-year, missing the consensus estimate of $1.068 billion [1] - The company reported earnings per share of 19 cents, beating the consensus estimate of 17 cents per share [1] Operational Insights - CEO Ynon Kreiz highlighted operational excellence in the current macroeconomic environment and the execution of the strategy to grow Mattel's IP-driven toy business and expand entertainment offerings [2] - The company experienced "meaningful gross margin expansion" and international growth during the quarter [2] Category Performance - Growth was noted in Action Figures and Hot Wheels, while Barbie saw declines, attributed to tariff discussions and affordability issues during the holiday season [3][7] - Specific category performance included Dolls at $335 million (-19% year-over-year), Infant, Toddler and Preschool at $143 million (-25% year-over-year), Vehicles at $407 million (+10% year-over-year), and Action Figures, Building Sets, Games, and Other at $264 million (+16% year-over-year) [7] Future Guidance - Mattel lowered its full-year earnings per share guidance to a range of $1.54 to $1.66, down from $1.66 to $1.72 [4] - The company adjusted its full-year sales forecast to a growth range of 1% to 3% year-over-year, down from 2% to 3%, with new sales guidance set at $5.434 billion to $5.541 billion [5] - The guidance is subject to market volatility and potential regulatory actions impacting global trade [5] Stock Performance - Following the earnings report, Mattel's stock declined by 4.46% to $19.30 in after-hours trading, within a 52-week trading range of $13.95 to $22.06 [5]