Mattel stock sinks after the Barbie maker posts disappointing Q3 results
Shares of toymaker Mattel fell by more than 6% in early trading this morning, after the company posted third-quarter results on Tuesday evening that missed analysts’ estimates.
The company, which owns Barbie and Hot Wheels, reported net sales of $1.74 billion — a 6% slump year over year, and short of the $1.83 billion Wall Street expected — with net profit also slipping by 25% to $278 million.
Per CNBC, this marks the first time in three quarters that Mattel has missed on both earnings and revenue expectations. The report detailed that global Barbie sales sank 17% year on year, with Fisher-Price sales dropping 19%; meanwhile, as was seen in the second quarter, Hot Wheels remains a bright spot, with sales up 8%.
The company raised prices in July to offset the costs of tariffs, and it seems to still be feeling the effects of changing import patterns. (Mattel sources ~40% of its products from China.) But, in an interview cited by the Financial Times, Mattel Chief Executive Ynon Kreiz said that retailers are “now accelerating domestic orders” ahead of the holiday shopping season.
Earlier on Tuesday, Mattel and rival toy company Hasbro announced that they had both reached licensing deals with Netflix to make toys from the streamer’s smash hit “KPop Demon Hunters.”
Per CNBC, this marks the first time in three quarters that Mattel has missed on both earnings and revenue expectations. The report detailed that global Barbie sales sank 17% year on year, with Fisher-Price sales dropping 19%; meanwhile, as was seen in the second quarter, Hot Wheels remains a bright spot, with sales up 8%.
The company raised prices in July to offset the costs of tariffs, and it seems to still be feeling the effects of changing import patterns. (Mattel sources ~40% of its products from China.) But, in an interview cited by the Financial Times, Mattel Chief Executive Ynon Kreiz said that retailers are “now accelerating domestic orders” ahead of the holiday shopping season.
Earlier on Tuesday, Mattel and rival toy company Hasbro announced that they had both reached licensing deals with Netflix to make toys from the streamer’s smash hit “KPop Demon Hunters.”
