On Monday 5 May 2025 Mattel reported net Sales of $827 million, up 2% with an adjusted gross margin of just under 50%. This was against an Adjusted Operating Loss of $16 million – an improvement of $7 million. As with many other companies – not least the likes of Character Group in the UK and Jakks Pacific – full year 2025 guidance has been paused due to the volatile macro-economic environment and evolving US tariff situation.
Ynon Kreiz, chairman and CEO, said: “This was a strong quarter for Mattel, with positive performance and continued operational excellence. Our brands are thriving, our products and experiences stand out in the marketplace, and our balance sheet gives us resilience and flexibility to execute our strategy. As we navigate the current period of macro-economic volatility, we are adapting with speed, agility, and discipline. We expect not only to manage through this period but strengthen our competitive position.”
“This was a strong quarter for Mattel, with positive performance and continued operational excellence”
Anthony DiSilvestro, chief financial officer, said: “Mattel achieved top line growth in the quarter, with broad-based category strength and expanded gross margins. Given the evolving tariff situation, we are taking mitigating actions designed to fully offset the potential incremental cost impact. We are well positioned financially with ample cash and will continue to manage our balance sheet in line with our capital allocation priorities.”
Overview
Net sales – $827 million, up 2% against Q1 2024. The increase was driven by a 3% increase in North America, and a 1% increase internationally.
Reported gross margin – increased to 49.4 against Q1 2024. Adjusted Gross Margin increased to 49.6%, versus 48.3%. The increase was primarily driven by lower inventory management costs, principally obsolescence and closeouts, and savings from the optimising for profitable growth programme, partly offset by cost inflation.
Reported operating loss – $53 million, an increase of $17 million. Adjusted operating loss was $16 million, an improvement of $7 million. The increase in reported operating loss was primarily due to an increase in other selling and administrative expenses, partially offset by higher net sales and gross margin. The improvement in adjusted operating loss was primarily driven by higher net sales and adjusted gross margin.
