Mattel misses profit est. due to weaker orders

Investing.com -- Mattel Inc reported quarterly earnings below Wall Street expectations on Tuesday as U.S. retailers pulled back on toy orders, though the company said demand from consumers remains strong and expects a solid holiday season.

Third-quarter earnings came in at 89 cents per share, missing analysts’ estimates of $1.06.

Revenue fell to $1.74 billion from $1.84 billion expected, as the maker of Barbie and Hot Wheels faced what it described as industry-wide changes in retailer ordering patterns.

Chief Executive Ynon Kreiz said U.S. orders have picked up since the start of the fourth quarter and that point-of-sale growth is improving across all regions. He said Mattel expects a “good holiday season” and strong revenue growth in the final quarter.

The company reiterated its full-year 2025 earnings forecast of $1.54 to $1.66 a share, roughly in line with Wall Street expectations, and said it remains on track with cost savings under its “Optimizing for Profitable Growth” program.

CFO said inventories were “at appropriate levels” as the company heads into the holiday period.

Shares fell 6% in extended trading.

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