Q2 2025 Mattel Inc Earnings Call Transcript
Key Points
- Mattel Inc (MAT) achieved strong international growth with a 9% increase in gross billings across key regions.
- The company expanded its adjusted gross margin by 200 basis points to 51.2%, demonstrating operational excellence.
- Vehicles category saw double-digit growth, driven by Hot Wheels, which is on track for its eighth consecutive year of growth.
- Mattel Inc (MAT) is advancing its entertainment strategy with the formation of Mattel Studios and plans to release one to two films per year starting in 2026.
- The company announced a strategic collaboration with OpenAI to leverage new technologies and expand its brand reach.
- Net sales declined by 6% as reported and in constant currency, impacted by global trade dynamics and timing shifts in retailer ordering patterns.
- Dolls category experienced a 19% decline due to fewer new Barbie product launches and lower retailer promotional support.
- Infant, Toddler, and Preschool category decreased by 25%, primarily due to a decline in Fisher-Price and planned exits of certain product lines.
- The US business was adversely affected by trade-related uncertainty, leading to a 15% decline in North America gross billings.
- Free cash flow guidance for the full year was reduced to approximately $500 million, down from a prior guidance of $600 million, due to the timing of working capital related to tariffs.
Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to Mattel Inc second-quarter 2025 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Jen Kettnich, VP of Investor Relations at Mattel. Please go ahead.
Thank you, operator, and good afternoon, everyone. Joining me today are Ynon Kreiz, Mattel's Chairman and Chief Executive Officer; and Paul Ruh, Mattel's Chief Financial Officer.
As you know, this afternoon, we reported Mattel's second quarter 2025 financial results. We will begin today's call with Ynon and Paul, providing commentary on our results, after which, we will provide some time for questions. Please note that during the question-and-answer session, we respectfully ask that you limit to one question and one follow-up so that we can get to as many analysts and questions as possible today.
Today's discussion, earnings release and slide presentation
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