Mattel reported its first-quarter 2025 financial results on May 5, 2025, with net sales of $827 million, up 2% as reported and 4% in constant currency. The company achieved an adjusted gross margin of 49.6%, an increase of 130 basis points, and an adjusted loss per share of $0.03, an improvement from a $0.05 loss in the prior year.
Despite beating Q1 estimates, Mattel announced it is pausing its full-year 2025 guidance due to the volatile macroeconomic environment and the evolving U.S. tariff landscape. CEO Ynon Kreiz stated that while tariffs did not affect Q1 results, the company is taking mitigating actions to offset potential incremental cost impacts on future performance.
These mitigating actions include accelerating supply chain diversification to reduce reliance on China-sourced products, optimizing product sourcing and mix, and implementing pricing actions in its U.S. business where necessary. Mattel also increased its 2025 savings target under the Optimizing for Profitable Growth program from $60 million to $80 million.
Category performance in Q1 saw Dolls gross billings up 1%, driven by Disney Princess and Wicked, and Vehicles (primarily Hot Wheels) up 4%. Action Figures, Building Sets, Games, and Other increased 12%. Mattel maintained its $600 million share repurchase target for 2025, signaling continued commitment to capital allocation despite the market uncertainty.
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