Mattel 2025 Q1 Earnings Mixed Results with Net Loss Widening by 42.6%

Mattel (MAT) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company surpassed revenue expectations, reporting $827 million, exceeding analyst predictions of $786 million. Despite this, Mattel's decision to pause its full-year 2025 guidance was influenced by ongoing macro-economic challenges and uncertainty surrounding U.S. tariffs. In response, mattel is implementing measures to offset potential future costs, including supply chain diversification and product sourcing adjustments. The company's decision reflects a cautious approach amid evolving market landscapes, while maintaining its commitment to a $600 million share repurchase target for 2025.

Revenue
Mattel's total revenue grew by 2.1% in 2025 Q1, reaching $826.63 million compared to $809.51 million in 2024 Q1. The Barbie segment generated $173.80 million, while Hot Wheels contributed $268.80 million. Fisher-Price reported $90.10 million, and other segments added $391.50 million. Additionally, the company's gross billings stood at $924.20 million.

Earnings/Net Income
Mattel's losses increased to $0.12 per share in 2025 Q1, compared to a loss of $0.08 per share in 2024 Q1, indicating a 50% wider loss. The net loss expanded to $-40.32 million, representing a 42.6% increase from the $-28.28 million loss in 2024 Q1. Overall, the EPS results were unfavorable.

Price Action
The stock price of Mattel climbed by 4.16% during the latest trading day and rose by 5.71% over the most recent full trading week. Month-to-date, it edged up by 0.42%.

Post-Earnings Price Action Review
Over the past five years, buying Mattel shares after a quarterly revenue drop and holding for 30 days yielded a 20.56% return, compared to a benchmark return of 83.12%, resulting in an excess return of -62.56%. The strategy achieved a Compound Annual Growth Rate (CAGR) of 3.85%, with a Sharpe ratio of 0.34. It experienced a maximum drawdown of -13.29% and demonstrated a volatility of 11.40%. This review indicates that the strategy has consistently underperformed the benchmark, highlighting the challenges faced by investors using this approach.

CEO Commentary
Ynon Kreiz, Chairman and CEO of Mattel, expressed optimism about the company's performance in Q1, emphasizing the resilience and flexibility of their balance sheet. He highlighted the thriving brands and standout products in the marketplace, noting operational excellence and adaptability in navigating macro-economic volatility.

Guidance
Mattel is pausing full-year 2025 guidance due to volatile macro-economic conditions and challenges in predicting consumer spending and U.S. sales. Despite this, the company is maintaining its $600 million share repurchase target for 2025 and increasing its cost savings target from $60 million to $80 million under the Optimizing for Profitable Growth program.

Additional News
Mattel has renewed its multi-year global licensing agreement with Disney for the Toy Story franchise, coinciding with Toy Story's 30th anniversary and the upcoming Toy Story 5 release. The company also launched a new product collection under the Mattel Brick Shop™ brand in collaboration with Hot Wheels®, featuring collectible building sets available for pre-sale globally. Additionally, Mattel has announced the launch of a LeBron James Ken doll, marking the first-ever Ken doll of a professional athlete, as part of the Kenbassadors™ initiative.

Ask Aime: Mattel's Q1 earnings reveal cautious approach