| Imagery Source: Wikimedia Commons / Jelson25 |
| Information Source: Mattel, Inc |
| Second Quarter 2025 Highlights Versus Prior Year |
- Net Sales of $1,019 million, down 6% as reported and in constant currency
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- Gross Margin of 50.9%, an increase of 170 basis points; Adjusted Gross Margin of 51.2%, an increase of 200 basis points
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- Operating Income of $78 million, a decrease of $5 million; Adjusted Operating Income of $88 million, a decrease of $8 million
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- Net Income of $53 million, a decrease of $4 million
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- Earnings per Share of $0.16 compared to $0.17 per share; Adjusted Earnings per Share of $0.19, no change versus the prior year
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- Repurchased $50 million of shares, bringing the first half total to $210 million
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- Company resumes guidance with updated 2025 outlook, and reaffirms 2025 share repurchase target of $600 million
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| 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. We achieved meaningful gross margin expansion, grew internationally, and further progressed our entertainment slate. We are embracing technology and collaborating with world-class partners to bring our iconic brands to life in new ways to position Mattel for long-term success.” |
| Paul Ruh, CFO of Mattel, added: “Mattel's adjusted EPS was the same as last year, despite global trade dynamics and timing shifts in retailer ordering patterns impacting our US business. We grew in Action Figures and Vehicles, increased our POS, and repurchased more shares. We are confident in the power of our brand portfolio and our ability to navigate ongoing uncertainty. Our balance sheet is strong, and we are executing in line with our capital allocation priorities to create long-term shareholder value.” |
| Second Quarter Financial Overview |
| Net Sales |
| Net Sales were $1,019 million, down 6% as reported and in constant currency, versus the prior year’s second quarter. The decrease in Net Sales was driven by a 16% decrease in North America, partially offset by a 7% increase in International. |
| Gross Margin |
| Reported Gross Margin increased to 50.9%, versus 49.2% in the prior year’s second quarter, and Adjusted Gross Margin increased to 51.2%, versus 49.2%. The increase in Gross Margin was primarily driven by savings from our Optimising for Profitable Growth program, lower inventory management costs, and favourable mix, partially offset by cost inflation. |
| Operating Income |
| Reported Operating Income was $78 million, a decrease of $5 million, and Adjusted Operating Income was $88 million, a decrease of $8 million. The decrease in Operating Income was primarily due to lower Net Sales, partially offset by higher Gross Margin and lower Other Selling and Administrative Expenses. Cash Flow For the six months ended June 30, 2025, |
| Cash Flows |
| Used for Operating Activity $275 million, an increase of $58 million, primarily driven by lower net income net of non-cash adjustments and higher working capital usage. |
| Cash Flows Used for Investing Activities were $55 million, an improvement of $18 million, primarily due to higher proceeds from foreign currency forward exchange contracts. |
| Cash Flows Used for Financing Activities and Other were $188 million, an improvement of $61 million, primarily driven by the favourable impact of foreign currency exchange rate changes. |
| Second Quarter |
| Gross Billings by Category Worldwide Gross Billings for Dolls were $335 million, down 19% as reported and in constant currency, versus the prior year’s second quarter, primarily due to declines in Barbie. |
| Worldwide Gross Billings for Infant, Toddler, and Preschool were $143 million, down 25% as reported and in constant currency, primarily due to declines in Fisher-Price and Baby Gear & Power Wheels. |
| Worldwide Gross Billings for Vehicles were $407 million, up 10% as reported and in constant currency, primarily driven by growth in Hot Wheels. |
| Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $264 million, up 16% as reported and in constant currency, primarily driven by growth in Action Figures, partially offset by a decline in Building Sets. |
| Mattel's guidance considers what the company is aware of today, but remains subject to market volatility, unexpected disruptions, including further regulatory actions impacting global trade, and other macroeconomic risks and uncertainties. |
| A reconciliation of Mattel’s non-GAAP financial measures on a forward-looking basis, including Net Sales on a constant currency basis, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Tax Rate, Adjusted EPS, and Free Cash Flow, is not available without unreasonable effort. Mattel is unable to predict with sufficient certainty items that would be excluded from the corresponding GAAP measures, including the effect of foreign currency exchange rate fluctuations, unusual gains and losses or charges, and severance and restructuring charges, due to the unpredictable nature of such items, which may have a significant impact on Mattel’s GAAP measures. |
| For the full document, click the link below |
| Mattel, Inc |
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