Mattel (NASDAQ:MAT) reported better-than-expected first-quarter results and paused its full-year 2025 guidance due to macroeconomic volatility and concerns over potential tariffs.
The toy maker posted a Q1 loss of $0.05 per share, narrower than the $0.09 loss analysts had projected. Revenue rose 2% year-over-year to $827 million, beating the $786 million consensus. On a constant currency basis, sales were up 4%.
Despite the strong start, Mattel opted to withhold updated full-year guidance, citing a lack of visibility amid shifting economic conditions and uncertainty surrounding U.S. trade policy. The company is taking steps to mitigate potential tariff effects, including diversifying its supply chain and adjusting sourcing strategies.
Gross margin improved by 140 basis points to 49.4%, reflecting ongoing operational efficiency. Mattel also reiterated its intention to repurchase $600 million in shares during 2025.
Performance across key brands was mixed. Hot Wheels posted a 4% increase in gross billings, while Barbie fell 2% and Fisher-Price declined 3%, signaling uneven demand across product lines.
