Mattel Says Retailers Are Stocking Up for Holiday Shopping Season

Core Insights - Retailers are increasing their inventory of toys and games in anticipation of a strong holiday shopping season, driven by rising consumer demand as noted by Mattel's CEO Ynon Kreiz [1][7] - Mattel's U.S. business faced challenges in Q3 due to changes in retailers' ordering patterns influenced by the macroeconomic environment and tariffs, but there has been a recovery in orders at the start of Q4 [2][3] Retail Ordering Patterns - Retailers have shifted from a direct import model, where they managed importation and warehousing, to a domestic shipping model, allowing for more flexibility and responsiveness to market conditions [4][5] - This shift has resulted in orders being placed later and more frequently, aligning with a just-in-time inventory approach [5][6] Consumer Demand and Sales Outlook - There is an observed increase in point of sale (POS) activity, prompting retailers to accelerate their domestic orders to prepare for the holiday season [7] - Mattel anticipates strong top-line growth in Q4 and is reaffirming its full-year guidance based on these trends [3] Strategic Initiatives - Mattel is focusing on expanding its intellectual property-driven toy business and enhancing its entertainment offerings, including the launch of self-published digital games and new television series [8] - The company's collaboration with OpenAI to integrate artificial intelligence into its products is progressing [9]