Barbie and Hot Wheels toy maker Mattel has posted lower fourth quarter earnings, even as it recorded higher overall revenues.
For the fourth quarter, Mattel reported net income of $106 million, or 35 cents per share, compared to a year-earlier $141 million in net income, and 42 cents per share. Analysts had forecast 55 cents per-share in earnings for Mattel during the latest financial quarter.
The latest quarterly revenues came to $1.76 billion, which were up 7 percent on a year-earlier $1.64 billion in revenues. But Mattel during the latest quarter missed Wall Street expectations of $1.83 billion in overall sales. Shares in Mattel tumbled $3.55, or nearly 17 percent, to $17.51 in after hours trading.
Ynon Kreiz, chairman and CEO of Mattel, in a statement that accompanied his latest financial results pointed to topline growth in the fourth quarter. But he added “December gross billings in the U.S. ended up growing less than expected” during a key Christmas retail season. That underlined how Mattel and other toy makers face consumer spending headwinds and tariff disruption to their supply chains.
The toy maker said worldwide gross billings for dolls, infant, toddler and preschool products were down. That was offset by higher worldwide gross billings for vehicles, driven by Hot Wheels sales growth, and action figures, building sets and other toy lines.
On Tuesday, Mattel also announced it had reached an agreement to acquire full ownership of Mattel163 mobile games studio, subject to closing conditions. Terms of the deal were not disclosed.
The fourth quarter results offer a window on a continuing pivot by Mattel to the entertainment space, a move being watched closely by investors after the 2023 box office success of its Barbie movie release.
The toy maker has a deal with Disney to supply Toy Story 5 action figures and other product around a tentpole release later this year, and also has a KPop Demon Hunters doll line based on the Netflix franchise.
Another deal has Mattel in a partnership with Warner Bros. Discovery to release DC-themed action figures and other product lines.
And as it cashes in on its own toy brands, Amazon MGM Studios and Mattel Studios have Masters of the Universe coming out June 5, 2026 and Matchbox The Movie, an Apple original film from Skydance Media and Mattel Films is set for a global debut on Oct. 9, 2026.