- Mattel is pausing its 2025 financial outlook due to uncertainties related to tariffs and economic conditions.
- The company is seeing challenges in predicting consumer spending and U.S. sales, particularly during the holiday season.
- Operating in a volatile macro-economic environment is contributing to this uncertainty.
- In the first quarter of 2025, Mattel reported an adjusted loss per share of 3.0 cents, an improvement from a 5.0-cent loss per share year-on-year, and better than the anticipated 10-cent loss.
- Net sales for the quarter were $826.6 million, up 2.1% year-on-year, surpassing the expected $788.6 million.
- Gross billings reached $924.2 million, exceeding the estimated $884.8 million.
- Specific segments such as Dolls, Vehicles, and Action Figures, Building Sets, Games, and Other showed positive growth in gross billings.
- North America gross billings rose by 3.9% year-on-year, while international gross billings increased by 1.5%.
- The adjusted gross margin stood at 49.6%, outperforming the estimate of 47.9%.
- Adjusted EBITDA increased by 6.9% year-on-year to $57.2 million, above the estimated $50.5 million.
- Mattel experienced a negative free cash flow of $11.4 million compared to a positive $5 million from the previous year, but it was less negative than the estimated $55.7 million.
- The first quarter results were not impacted by tariffs.
- Mattel is maintaining its $600 million share repurchase target for 2025.
- The company is implementing strategies to offset potential tariff costs, accelerating supply chain diversification, and reducing reliance on Chinese products.
- Prices in the U.S. will be adjusted as needed due to evolving market conditions.
- Mattel increased its 2025 savings target to $80 million from $60 million as part of its Optimizing for Profitable Growth program.
- The company remains focused on managing its balance sheet according to its capital allocation priorities.
Mattel Inc on Smartkarma
Analyst coverage of Mattel Inc on Smartkarma reveals a positive outlook from Baptista Research. In one report, titled “Mattel Inc.: Leveraging Product Portfolios & Partnerships To Fortify Market Position!” the analysts highlighted the company’s effective execution of its multiyear strategy, focusing on profit growth, margin expansion, and cash flow generation. Despite a minor decline in net sales for the full year, Mattel managed to increase its adjusted gross margin significantly, showcasing a balanced mix of achievements and challenges.
Another report from Baptista Research, titled “Mattel Inc.: Diversified Product & Brand Strategy Powering Our Bullishness! – Major Drivers,” emphasizes Mattel’s resilience in a challenging market environment. Despite a decrease in net sales, the company maintained profitability with an increase in adjusted EPS, demonstrating the strength of its diversified product and brand strategy. The analysts remain bullish on Mattel’s prospects, highlighting the major drivers driving their positive sentiment towards the company.
A look at Mattel Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the Smartkarma Smart Scores for Mattel Inc, the company shows promising signs in various aspects. With a solid momentum score of 4, Mattel is displaying positive trends that could potentially translate into future growth opportunities. Moreover, the company’s resilience score of 3 indicates its ability to withstand challenges and adapt to market changes effectively. Combined with a growth score of 3, Mattel seems poised for continued development and expansion in its market segment.
However, there are areas for improvement as indicated by the lower dividend score of 1. This suggests that investors focusing on dividend income may not find Mattel as appealing compared to other companies. Despite this, the company’s value score of 3 signals that there may be underlying value in Mattel Inc that investors can potentially capitalize on in the long term. Overall, with a diverse range of toy products and a global reach, Mattel Inc appears to have a positive long-term outlook in the toy industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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