Here’s What Affected Mattel’s (MAT) Performance in Q3

Group 1: Market Overview - U.S. equities experienced a rally in Q3 2025, driven by the Federal Reserve's first rate cut of the year, strong corporate earnings, and broadening market participation [1] - The enthusiasm for AI led to significant gains in the technology sector, while small-cap stocks outperformed as capital shifted into undervalued market segments [1] - Ariel Fund achieved a return of +12.39% in Q3 2025, outperforming the Russell 2500 Value Index (+8.17%) but lagging behind the Russell 2000 Value Index (+12.60%) [1] Group 2: Company Focus - Mattel, Inc. - Mattel, Inc. (NASDAQ:MAT) reported a one-month return of 13.49% and a 52-week gain of 0.95%, with shares closing at $19.18 and a market capitalization of $6.18 billion on October 23, 2025 [2] - The company faced mixed earnings due to timing shifts in retailer orders linked to tariff uncertainties, although consumer demand remained strong [3] - Despite a slight reduction in 2025 guidance, management anticipates revenue growth and market share gains, supported by resilient point of sale, disciplined cost control, and active buybacks [3] Group 3: Financial Performance - In Q3 2025, Mattel, Inc.'s net sales decreased by 6% as reported and 7% in constant currency, totaling $1.74 billion [4] - The company’s gross margins expanded, and earnings per share (EPS) exceeded consensus expectations, indicating progress on profitability initiatives [3] - The potential for monetizing intellectual property through future media projects supports the view that Mattel's shares are undervalued [3]