Mattel posted a 6% drop in net sales for the second quarter of 2025, reporting $1.02 billion in revenue as softness in North America continued to pressure results. The company pointed to a 16% decline in the region, partially offset by a 7% increase in international markets.
Despite the sales dip, Mattel’s gross margin improved to 50.9%, up 170 basis points, aided by cost savings, improved inventory management, and favorable product mix. Adjusted gross margin climbed to 51.2%.
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.”
Operating income totaled $78 million, down $5 million year-over-year. Adjusted operating income came in at $88 million, a decline of $8 million. Net income was $53 million, a $4 decline from last year. Mattel reports earnings of $0.16 per share, down slightly from $0.17 last year. Adjusted earnings per share held steady at $0.19.
“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,” adds Paul Ruh, CFO of Mattel. “We are confident in the power of our brand portfolio and our ability to navigate ongoing uncertainty.”
By category, Vehicles and Action Figures were standouts. Hot Wheels led the charge, helping the Vehicles segment grow 10% to $407 million. Action figures helped lift the combined Action Figures, Building Sets, Games, and Other category by 16%, reaching $264 million.
Dolls fell 19% due to a decline in Barbie, while Infant, Toddler, and Preschool slipped 25%, impacted by Fisher-Price, Baby Gear, and Power Wheels.
Mattel resumed forward-looking guidance and reaffirmed its full-year share repurchase target of $600 million. The company bought back $50 million in stock during the quarter, bringing the year-to-date total to $210 million.
The company will host an earnings call with analysts later this afternoon.
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