Mattel Q2 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Insights - Mattel, Inc. reported second-quarter 2025 results with earnings exceeding expectations while revenues fell short of estimates, showing a year-over-year decline in net sales but stable earnings per share compared to the prior year [1][4][10] Financial Performance - Adjusted earnings per share (EPS) for Q2 was 19 cents, surpassing the Zacks Consensus Estimate of 16 cents and matching the prior-year quarter's figure [4][10] - Net sales reached $1.02 billion, missing the consensus estimate of $1.06 billion by 3.8%, representing a 6% decline year over year [4][10] Segment Performance - North America segment net sales decreased by 16% year over year, attributed to declines in Dolls and Infant, Toddler, and Preschool categories [5] - International segment net sales increased by 7% year over year, driven by growth in the EMEA and Asia Pacific regions [5][6] Category Performance - Worldwide gross billings for Mattel Power Brands fell by 4% year over year to $1.15 billion, with Barbie gross billings declining by 25% [7] - Hot Wheels gross billings increased by 9%, while Fisher-Price saw a decline of 21% year over year [8] Operational Metrics - Adjusted gross margin improved to 51.2%, up 200 basis points year over year, primarily due to cost savings and a favorable product mix [9][10] - Adjusted EBITDA for the quarter was $169.9 million, slightly down from $170.8 million in the prior-year quarter [11] Balance Sheet Overview - As of June 30, 2025, cash and cash equivalents were $870.5 million, up from $722.4 million a year earlier, while total inventories increased to $867.9 million [12] - Long-term debt decreased to $1.73 billion from $2.33 billion year over year, with shareholders' equity at $2.17 billion [12]