Mattel misses Wall Street estimates as North American sales sink

Core Viewpoint - Mattel's third-quarter results fell short of analysts' expectations, primarily due to ongoing global tariffs impacting sales in North America, leading to a 4% drop in shares after hours [1][3]. Financial Performance - For the quarter ended September 30, net income was reported at $278 million, or 88 cents per share, down from $372 million, or $1.09 per share, a year earlier [2]. - Adjusted earnings per share were 89 cents, compared to the expected $1.07 [8]. - Net sales decreased by 6% to $1.74 billion, missing Wall Street's expectations of $1.83 billion [3][8]. Sales Breakdown - North American sales fell by 12%, with the most significant declines in the infant, toddler, and preschool categories [5]. - Global sales for Barbie decreased by 17%, and Fisher-Price sales dropped by 19%, while Hot Wheels sales increased by 8% [5]. Future Guidance - The company provided full-year guidance, projecting net sales growth between 1% and 3% and earnings per share between $1.54 and $1.66 [4]. - CEO Ynon Kreiz noted that orders from U.S. retailers have significantly accelerated since the beginning of the fourth quarter [4]. Strategic Initiatives - Mattel is focusing on expanding its entertainment offerings and leveraging new technology, including a partnership with Hasbro and Netflix to launch products tied to the movie "KPop Demon Hunters" [6][7].