Mattel 2025 Q1 Earnings Strong Performance as Net Loss Widens 42%

Mattel (MAT) reported its fiscal 2025 Q1 earnings on May 05th, 2025. Mattel reported a robust performance in its first quarter of 2025, with revenue beating expectations at $827 million against an estimated $791.5 million. Despite these gains, the company experienced a wider net loss, with adjusted earnings per share at a loss of $0.03, outperforming the expected loss of $0.10. The company has paused its full-year 2025 guidance due to uncertainties in consumer spending amid ongoing tariffs.

Revenue

Mattel reported a notable increase in total revenue, rising 2.1% to $826.60 million in Q1 2025 from $809.50 million in Q1 2024, driven by growth across several key product categories.

Earnings/Net Income

Mattel's losses deepened in Q1 2025, with net loss widening to $40.30 million from $28.30 million in Q1 2024. The adjusted EPS of $-0.03 was better than expected, reflecting a more favorable outcome than anticipated.

Price Action

The stock price of Mattel has edged up 0.43% during the latest trading day, climbed 3.05% during the most recent full trading week, but has plummeted 18.47% month-to-date.

Post-Earnings Price Action Review

Following the Q1 earnings report, Mattel's stock price showed a generally positive reaction, although the effects varied across different metrics and time frames. Revenue metrics displayed a positive influence, with a 3-Day win rate of 57.14%, a 10-Day win rate of 66.67%, and a 30-Day win rate of 42.86%. These figures suggest a tendency for price appreciation, especially within the first ten days post-report. Net income also positively influenced the stock, mirroring the win rates seen with revenue, indicating its significance to investors. EPS impacted the stock price slightly less, with win rates similar to those found with revenue and net income. Despite modest average returns following earnings reports, the maximum return observed over 30 days was 8.50%, highlighting moderate gains post-report. Overall, Mattel's earnings report metrics show a positive correlation with its stock price, with net income and revenue demonstrating a stronger influence than EPS.

CEO Commentary

Mattel's Chairman and CEO Ynon Kreiz emphasized the company's strong performance in the first quarter, noting a 2% growth in net sales and a 130 basis point increase in adjusted gross margin to 49.6%. Kreiz highlighted growth in key categories such as action figures, vehicles, dolls, and games while acknowledging challenges from tariffs and global trade uncertainty. He reiterated Mattel's commitment to supply chain diversification and product sourcing optimization to navigate current market dynamics.

Guidance

Due to uncertainty around consumer spending and U.S. sales amid evolving tariff situations, Mattel has paused its full-year 2025 guidance. However, the company maintains a target for $600 million in share repurchases for the year. CEO Ynon Kreiz expressed confidence in Mattel's strategies to mitigate potential cost impacts, especially concerning its international operations.

Additional News

Recently, Mattel has maintained its $600 million share repurchase target for 2025, underlining its commitment to returning value to shareholders despite a volatile macro-economic environment. The company has also been focusing on diversifying its supply chain to reduce reliance on China, aligning with strategic efforts to mitigate future risks related to trade policy and tariffs. Furthermore, Mattel is actively adjusting its product sourcing strategies, aiming to optimize costs and reinforce its market position amidst ongoing challenges.