Mattel is off to a strong start in Q1, with net sales up 4%, beating Wall Street estimates. 

It’s welcome news for the global toy industry following the recent widespread disruption from tariffs, especially in the US. So far, toy companies, including Mattel, are reporting minimal impacts from the Iran conflict—though this could change, especially if it drags on much longer. In the meantime, toycos may see some additional upticks soon, with the US government starting to issue tariff refunds. (Learning Resources, for example, which sued the government over the tariffs in the case that got them overturned, paid US$11 million towards them last year, which it should get back.)

Here are the highlights from Mattel’s financial reports and earnings call, showcasing which categories drove growth, what offset success and what the company’s bottom line looked like. 

Q1 net sales: US$862 million, up 4% from the same period last year

Vehicles drove growth: Worldwide gross billings in the vehicles category were up 17% to US$361 million, thanks primarily to Hot Wheels. 

Action figures figured in, too: Worldwide gross billings for action figures, building sets, games and other were up 21% to US$233 million. 

Dolls took a dip: The category made US$272 million in gross billings, an 8% drop. 

Infant, toddler and preschool dropped: This category saw double-digit losses, earning US$106 million in worldwide gross billings, down 16%. 

Strategic acquisition: The company spotlighted the acquisition of the Mattel163 mobile game studio as a highlight from the quarter—part of the company’s strategy to make gaming a priority, SVP Marcus Liassides told Kidscreen. 

Gaming goals: Speaking of gaming, executive chairman and CEO Ynon Kreiz revealed during the earnings call that the company has soft-launched a Masters of the Universe game ahead of the feature film’s June 5th premiere. There’s a second game in development now, with a release planned for later this year. 

Mattel expects another hit with Masters of the Universe: With the upcoming film set to be released in thousands of theaters worldwide, the company has laid out a broad marketing campaign that spans out-of-home and brand partnerships. A few of these include Funko figures, Goodr sunglasses and a Denny’s menu. One unique marketing ploy was a drone-powered light show Mattel put on near Coachella to promote the film. 

Why Mattel thinks MotU has the power: The movie has broad family appeal; it’s toyetic, which should drive sales; and awareness of the movie has been growing, said Kreiz. “So we’re very positive about it. We said it will be a driver. We expect double-digit growth, and we expect it will give a whole new generation of fans an opportunity to engage with this great franchise.” 

What else is coming: Mattel is gearing up for the premiere of the Matchbox movie in October, based on the company’s toy vehicle IP from the ’50s. Further down the line, it’s developing more films based on Hot Wheels (John M. Chu of Wicked fame is directing), Polly Pocket, Barney and Rock ‘Em Sock ‘Em Robots.