Q3 2025 Mattel Inc Earnings Call Transcript
Key Points
- Consumer demand for Mattel Inc (MAT) products grew in every region, including the US.
- Mattel Inc (MAT) maintained a gross margin above 50%, demonstrating operational excellence.
- The company repurchased $202 million of shares in the third quarter, with a target of $600 million for the full year.
- Mattel Inc (MAT) launched two new successful product lines: Mattel Brick Shop and Hot Wheels Speed Snap Drive System.
- American Girl achieved its fourth consecutive quarter of growth, driven by strength in both direct-to-consumer and wholesale channels.
- Net sales, adjusted operating income, and adjusted earnings per share declined due to shifts in US retailer ordering patterns.
- Dolls and Infant, Toddler, Preschool categories experienced a decline in gross billings.
- Adjusted gross margin decreased by 290 basis points to 50.2%, impacted by unfavorable foreign exchange, inflation, and tariffs.
- Total company gross billings decreased 5% in constant currency.
- Inventory levels increased by $89 million compared to the prior year, reflecting tariff-related costs and foreign exchange impacts.
Ladies and gentlemen, thank you for standing by. My name is [Abby]. I'll be your conference operator today.
At this time, I would like to welcome everyone to the Mattel, Inc., third-quarter 2025 earnings conference call.
(Operator Instructions)
Thank you. I would now like to turn the conference over to Jenn Kettnich, Head of Investor Relations. You may begin.
Thank you, operator. Good afternoon, everyone.
Joining me today are Ynon Kreiz, Mattel's Chairman and Chief Executive Officer; and Paul Ruh, Mattel's Chief Financial Officer.
This afternoon, we reported Mattel's third-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.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
