Mattel Faces Headwinds in Q3 2025 as Vehicles & Collectibles Hold the Line

EL SEGUNDO, Calif. — October 21, 2025 — Mattel reported third-quarter results showing net sales of $1.736 billion, down 6 % as reported and 7 % in constant currency. Licensing International+2The Toy Book+2
Gross margin slipped to 50.0 % from 53.1 % a year ago, and operating income fell to $380 million, a drop of about $108 million year-over-year. Licensing International+1

Chairman & CEO Ynon Kreiz described the quarter as “challenged in the U.S. by industry-wide shifts in retailer ordering patterns,” but said demand remained strong globally. The Toy Book+1

Looking Ahead & What It Means for Collectors

Mattel reaffirmed its full-year 2025 guidance: Net sales to grow 1–3 % in constant currency and adjusted EPS of $1.54 to $1.66. Licensing International+1

For collectors:

• The strength of Hot Wheels and the action-figure/building-set categories signals where Mattel is leaning — expect more emphasis, special releases and collector-driven variants in those lines.
• Doll fans (especially Barbie and preschool lines) should be cautious: the decline suggests retailer ordering softness and potential over-hang.
• The layoffs and cost-cutting suggest Mattel is re-engineering behind the scenes, which could lead to fewer SKUs, tighter releases, and perhaps more focus on premium/collector tiers rather than mass-market saturation.

Segment Highlights: Strength in Vehicles & Figures, Weak in Dolls & Preschool

• Vehicles category (led by Hot Wheels) grew 8 % to $626 million. Licensing International+1
• Action Figures, Building Sets, Games & Other rose 11 % to $404 million. Licensing International
• Dolls category slid 11 % to $674 million, weighed down by softness in the Barbie franchise. Licensing International+1
• Infant, Toddler & Preschool dropped 25 % to $262 million, reflecting steep softness in Fisher-Price and related lines. Licensing International+1

Regionally, North America sales dropped ~12 %, offset in part by a ~3 % rise internationally. The Toy Book+1

Layoffs & Cost-Saving Drive

Mattel announced that it would lay off approximately 120 employees at its El Segundo headquarters as part of its broader “Optimizing for Profitable Growth” programme, targeting about US$200 million in cost savings by 2026. Los Angeles Business Journal+2latimes.com+2
Roles cut include marketing, design, IT, and managers/directors — reflecting efforts to reduce selling, general & administrative costs. Sfgate

Source: Mattel Reports Third Quarter 2025 Financial Results — Mattel, Inc., October 21 2025.