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Jun 30, 2025
Mattel Q2 2025 Earnings Report
Mattel reported its second quarter 2025 financial results, showing a decrease in net sales but an increase in gross margin and international growth.
Key Takeaways
Mattel's second quarter 2025 performance was characterized by a 6% decrease in net sales to $1,019 million, primarily due to a significant decline in North America. However, the company achieved a notable increase in gross margin to 50.9% and saw strong growth in its international segment, particularly in EMEA and Asia Pacific. Adjusted EPS remained flat compared to the prior year, and the company continued its share repurchase program.
Net Sales decreased by 6% to $1,019 million, driven by a 16% decline in North America, partially offset by a 7% increase internationally.
Gross Margin improved by 170 basis points to 50.9%, with Adjusted Gross Margin increasing by 200 basis points to 51.2%.
Adjusted Earnings per Share remained unchanged at $0.19 compared to the prior year.
Worldwide Gross Billings for Vehicles and Action Figures, Building Sets, Games, and Other categories showed strong growth, up 10% and 16% respectively.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel has resumed its full-year 2025 guidance, with updated outlooks for Net Sales, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Tax Rate, Adjusted EPS, and Free Cash Flow. The company also reaffirmed its 2025 share repurchase target.
Positive Outlook
- Net Sales are projected to grow by 1% to 3% in constant currency for FY2025.
- Adjusted Gross Margin is expected to be approximately 50% for FY2025.
- Adjusted Operating Income is guided between $700 million and $750 million for FY2025.
- Adjusted EPS is projected to be between $1.54 and $1.66 for FY2025.
- Free Cash Flow is expected to be approximately $500 million for FY2025.
Challenges Ahead
- The updated FY2025 Net Sales guidance (1% to 3%) is lower than the prior guidance (2% to 3%).
- The updated FY2025 Adjusted Operating Income guidance ($700M - $750M) is lower than the prior guidance ($740M - $765M).
- The updated FY2025 Adjusted EPS guidance ($1.54 - $1.66) is lower than the prior guidance ($1.66 - $1.72).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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