Financial Data and Key Metrics Changes - Net sales declined by 6% as reported and in constant currency to $1.02 billion [6][19] - Adjusted gross margin increased by 200 basis points to 51.2% [7][24] - Adjusted earnings per share remained the same as last year at $0.19 [7][26] - Total gross billings decreased by 4% in constant currency [20] Business Line Data and Key Metrics Changes - Dolls category declined by 19% due to fewer new Barbie product launches and lower retailer promotional support [21] - Vehicles category increased by 10%, with Hot Wheels achieving a 9% growth [21] - Infant, toddler, and preschool category decreased by 25%, primarily due to a decline in Fisher Price [22] - Challenger categories increased by 16%, driven by strong results in action figures [22] Market Data and Key Metrics Changes - Gross billings declined by 15% in North America, while international gross billings increased by 9% [23][24] - EMEA region grew by 8%, Latin America by 5%, and Asia Pacific by 16% [24] Company Strategy and Development Direction - Company is focused on creating innovative products and experiences to inspire and entertain [11] - Strategic collaboration with OpenAI to leverage new technologies for brand expansion [12] - Formation of Mattel Studios to enhance entertainment strategy, aiming to release 1-2 films per year starting in 2026 [12][13] - Continued emphasis on diversifying supply chain and optimizing product sourcing to mitigate tariff impacts [42][88] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing trade uncertainty impacting U.S. business but expressed confidence in brand appeal and operational excellence [6][7] - Consumer demand for toys remains strong, with expectations for continued growth in the toy industry [8][46] - Revised guidance for 2025 includes net sales growth of 1% to 3% in constant currency [31] Other Important Information - Company repurchased $50 million of shares in the quarter, targeting $600 million for the full year [26][30] - Cash balance increased to $870 million, with total debt remaining at $2.34 billion [27][28] - Cost savings program has realized $126 million since its launch in 2024, with a target of $200 million by 2026 [29][30] Q&A Session Summary Question: What were the major factors affecting guidance? - Management discussed the impact of lowered top-line guidance and tariff effects on the bottom line, alongside actions taken to mitigate these headwinds [34][36] Question: How are pricing strategies being adjusted in response to tariffs? - Management stated that pricing actions have been implemented in collaboration with retail partners, aiming to keep prices low for consumers [39][41] Question: What is the outlook for consumer demand in the second half of the year? - Management indicated strong consumer demand across all regions, with expectations for continued growth despite potential uncertainties [44][46] Question: How are inventory levels currently positioned? - Management confirmed that inventory levels are appropriate and aligned with retail needs, with no significant disruptions expected [75][76] Question: What is the expected impact of tariffs on gross margins? - Management estimated total tariff exposure for the year to be less than $100 million, with mitigating actions in place to offset impacts [71][72]

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]

Q2 2025 Performance - Net Sales declined by 6% as reported and in constant currency[15] - Adjusted Gross Margin increased by 200 bps[15] - Adjusted Earnings Per Share remained unchanged at $019[15] - Gross Billings decreased 4%[22] Category & Regional Performance - Vehicles gross billings increased by 10% in constant currency[23] - Dolls gross billings decreased by 19% in constant currency[23] - Infant, Toddler, and Preschool gross billings decreased by 25% in constant currency[23] - Action Figures, Building Sets, Games, and Other gross billings increased by 16% in constant currency[23] - EMEA gross billings increased by 8% in constant currency[27] - North America gross billings decreased by 15% in constant currency[27] - Latin America gross billings increased by 5% in constant currency[27] - Asia Pacific gross billings increased by 16% in constant currency[27] Financial Metrics - Q2 2025 Net Sales were $1019 million, a 6% decrease year-over-year[19] - Q2 2025 Adjusted Operating Income was $88 million, a decrease of $8 million year-over-year[19] - TTM Free Cash Flow was $530 million[42] - $50 million of shares were repurchased in Q2 2025, and $210 million YTD[43] - Cash balance increased to $870 million[44] - Debt was $2337 million with a leverage ratio of 22x[44] Cost Savings & Guidance - $126 million of savings achieved since launching the Optimizing for Profitable Growth (OPG) program in 2024[47] - Updated FY2025 Guidance for Net Sales is +1% to +3% in constant currency, Adjusted Gross Margin approximately 50%, Adjusted Operating Income between $700 million and $750 million, Adjusted EPS between $154 and $166, and Free Cash Flow approximately $500 million[50]

NEWS RELEASE Exhibit 99.1 MATTEL REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS Second Quarter 2025 Highlights Versus Prior Year EL SEGUNDO, Calif., July 23, 2025 – Mattel, Inc. (NASDAQ: MAT) today reported second quarter 2025 financial results. Ynon Kreiz, Chairman and CEO of Mattel, said: "Our second quarter performance reflects operational excellence in the current macroeconomic environment as we continue to execute our strategy to grow Mattel's IP-driven toy business and expand our entertainment offering ...

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [2][3] Group 2 - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales, appealing to value investors seeking undervalued opportunities [3] - The Growth Score focuses on a company's financial health and future outlook, analyzing earnings and sales to find stocks with sustainable growth potential [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth, and momentum characteristics [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with a historical average annual return of +23.62% for 1 ranked stocks [7][8] Group 4 - Mattel Inc. is the world's largest toy manufacturer, selling products globally through various brands and distribution channels [11] - Mattel holds a 3 (Hold) Zacks Rank with a VGM Score of A, indicating potential for growth, supported by a Growth Style Score of B and a forecasted earnings growth of 1.2% for the current fiscal year [12] - Recent analyst revisions have increased earnings estimates for Mattel, with the Zacks Consensus Estimate rising to $1.64 per share, and the company has an average earnings surprise of +41.2% [12][13]

Core Business & Technology - Klaviyo builds software for businesses to connect with their consumers [1] - The company provides technology to over 160,000 businesses globally [3] - The company recently launched an AI agent to act as a personal concierge for consumers [4][6] AI Agent & Customer Experience - The AI agent aims to provide personalized advice and product recommendations to consumers [6][8] - Thousands of businesses are currently testing the company's AI agent [9] - The company aims to democratize AI technology, enabling every business to have a personal agent for each consumer [9] Retail & Consumer Behavior - 60-70% of consumers are willing to spend more with brands that understand them [13] - AI can personalize the shopping experience, reducing the need for discounting [13] - AI agents help consumers discover relevant products, especially with businesses that have extensive catalogs [11][12] Future of Customer Service - The industry believes that AI agents will transform customer service from cost deflection to revenue generation by providing personalized advice [7][8] - The industry anticipates AI agents will be present across various consumer touchpoints, including apps, mobile sites, and physical stores [6]

Core Insights - Mattel, Inc. (MAT) is set to report its second-quarter 2025 results on July 23, with earnings per share (EPS) expected to be 16 cents, reflecting a 15.8% decline from the previous year [1][2] - Revenue is projected at nearly $1.08 billion, indicating a slight decrease of 0.1% compared to the same quarter last year [2] Factors Influencing Q2 2025 Results - The second-quarter performance is anticipated to benefit from strong entertainment tie-ins and brand traction in action figures, vehicles, and games, with product launches related to Jurassic World Rebirth and the Minecraft movie acting as revenue drivers [3] - Early sell-through of licensed products, particularly in action figures, and growth in core brands like Hot Wheels and UNO are expected to enhance revenue, supported by expanded collector sets and innovations in digital gaming [4] Challenges and Constraints - Retailers may have adopted cautious ordering behavior due to evolving trade policies and uncertain consumer demand, which could limit growth potential [5] - Input cost inflation, ongoing supply chain adjustments, and cautious retail promotion strategies are likely to exert moderate pressure on Mattel's margins [6] - The company is facing challenges in the infant and toddler segments, which may have constrained growth in the preschool category [5] Margin and Cost Considerations - Mattel's margins are expected to be impacted by elevated labor and logistics expenses, despite the company's efforts to achieve structural cost savings through its Optimizing for Profitable Growth initiative [6][7] - Preparatory pricing and inventory management efforts may have temporarily constrained margin growth in the second quarter [7] Earnings Prediction Model - The current model does not predict a definitive earnings beat for Mattel, as the company has an Earnings ESP of -1.05% and a Zacks Rank of 3 [8][10]

Core Viewpoint - The article discusses how higher tariffs imposed by the Trump administration are leading to increased prices for various consumer goods at Walmart, the largest retailer in the U.S., indicating a potential impact on consumer spending and inflation trends [2][4][5]. Price Changes at Walmart - Walmart has begun raising prices on certain household items due to increased costs from tariffs, with specific examples including a frying pan and a pair of jeans [3][10]. - A CNBC analysis tracked about 50 products, revealing that approximately a dozen items saw price increases, particularly those manufactured in countries facing significant tariff rates [3][4]. - The price of a 12-piece set of pots and pans rose from $99 to $149, and a 12-inch frying pan increased from $24.97 to $31.97 [10]. Broader Retail Trends - Other retailers, including Best Buy, Costco, and Nike, have also indicated they have raised or expect to raise prices due to tariffs [7]. - The overall impact of tariffs on consumer prices has not been as severe as initially feared, with some categories experiencing price increases but overall consumer spending remaining stable [15][16]. Tariff Impact on Specific Products - Products like juvenile items, polo shirts, and plush toys have seen price increases ranging from 12% to 27% [19]. - Levi Strauss reported a price increase of $1 for its jeans, aligning with similar products, while Newell Brands noted a 20% price hike on baby gear [12][13]. Supply Chain Strategies - Retailers have employed strategies such as early imports and the use of bonded warehouses to mitigate the impact of tariffs on pricing [17][18]. - Companies are attempting to predict tariff fluctuations, which influence their pricing decisions [18]. Price Dynamics Beyond Tariffs - Prices of some non-imported items have also changed, with eggs dropping from $3.47 to $2.72, showcasing factors outside of tariffs affecting prices [22]. - Coffee prices have risen significantly due to global supply issues and potential tariffs, with Folgers coffee increasing from $16.43 to $19.24 [24][25].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Mattel, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Mattel is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year decrease of 5.3% [3]. - Revenue projections stand at $1.08 billion, a slight decline of 0.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. - The Most Accurate Estimate for Mattel is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -8.57% [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [9]. - Mattel currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Mattel was expected to post a loss of $0.11 per share but instead reported a loss of -$0.03, resulting in a surprise of +72.73% [12]. - Over the past four quarters, Mattel has successfully beaten consensus EPS estimates each time [13]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement beyond earnings results [14]. - Mattel does not currently appear to be a strong candidate for an earnings beat, suggesting investors should consider additional factors before making decisions [16].

Product Innovation & Inclusivity - Mattel introduced the first Barbie doll with type 1 diabetes, expanding Barbie's repertoire [2] - This move marks an important step in Mattel's commitment to inclusivity, enabling more children to see themselves reflected in Barbie [2] - Mattel worked with nonprofit Breakthrough T1D to develop the doll [3] Market Reaction & Consumer Sentiment - Reactions to the new Barbie doll have been overwhelmingly positive, with children expressing joy and excitement [2][3] - The doll resonated deeply with children who have type 1 diabetes, fulfilling their desire to have a Barbie that represents them [2][4] - The launch of the doll has evoked strong emotional responses, including tears of joy from both children and adults [3]