Q3 net sales: US$1.74 billion

Year-over-year change: Down 6% from US$1.84 billion in Q3 2024

Stateside challenges: Much of the sales decline actually stems from a 12% decrease in the North American market, which has faced tariff uncertainties this year—while the international market saw a soft 3% increase. CEO and chairman Ynon Kreiz attributed the US business performance to “industry-wide shifts in retailer ordering patterns.”

Wheels win: The company had a notable bright spot in sales with Hot Wheels, which recorded an 8% jump. This helped drive the vehicles category sales up 8% to hit US$626 million. Another category uptick was seen in action figures and building sets, which saw sales leap 11% to US$404 million.

Dolls decline: But among other top brands, both Barbie and Fisher-Price sales were respectively down by 17% and 19% from last year. This translated into an overall 11% dip for the dolls category (US$674 million) while the infant, toddler, and preschool category (US$262 million) dropped 25%.

What’s next: Looking ahead, Mattel is focused on growing its IP-driven toy business and expanding entertainment offerings, Kreiz said. On the studios side, the company has several projects in the pipeline based on Polly Pocket, Hot Wheels, Magic 8 Ball and Masters of the Universe, to name a few.

Buzzy deals: The toyco is also gearing up to create a wide range of dolls, action figures, accessories, collectibles and playsets for the animated Netflix sensation KPop Demon Hunters—in a unique partnership forged with Hasbro to be co-master toy licensees, which was announced yesterday. This week, Mattel also renewed its licensing agreement with Disney for the Frozen and Disney Princess brands.

Stock impact: Shares were down 7% in late trading

Hope for the holidays: “Looking into the balance of the year, we expect a good holiday season for Mattel and strong topline growth in the fourth quarter,” Kreiz said.

“Our balance sheet is strong,” added CFO Paul Ruh. “Both owned and retail inventories are at appropriate levels as we enter the holiday season.”