Latest news with #YnonKreiz
The Star
5 days ago
- Business
- The Star
Mattel cuts 2025 forecast, hurt by tariff spectre
Sales dip: Barbies for sale at a toy store in New York City. Mattel reported a quarterly 6% drop in net sales to US$1.02bil, missing analysts' estimate of a 2.7% decline to US$1.05bil. — AFP NEW YORK: Toymaker Mattel cut its annual forecast, reinstating it after two months, and posted a sharp drop in second-quarter revenue, as weak Barbie sales in North America and global trade uncertainties weighed on demand. The Hot Wheels parent had pulled its sales and profit forecasts in May, when US President Donald Trump's shifting trade policy upended global supply chains and cast uncertainty over consumer spending trends. CEO Ynon Kreiz told Reuters that timing shifts in retailer ordering patterns had an outsized impact on Mattel's US business during the second quarter. He expects that the company will recover most of its sales in the back half of the year. Shares of Mattel were down about 3.5% in trading after the bell, as it also forecast lower 2025 gross margin compared with last year. Mattel now expects a rise in 2025 net sales of 1% to 3%, compared with its February target of a 2% to 3% increase. It forecast adjusted per-share profit between US$1.54 and US$1.66, below its prior estimate of US$1.66 to US$1.72 apiece. Adjusted gross margin is expected to be 50%, compared to 50.9% in 2024. 'We believe the slowdown is being impacted by the current trade environment and the company's full-year margin guidance shows a larger-than-expected impact from tariffs,' CFRA analyst Zachary Warring said. Analysts have warned that retailers such as Walmart, Target and were limiting building up inventory going into the key holiday season to minimise exposure to higher tariffs. Earlier in the day, rival Hasbro raised its annual revenue outlook but warned that its US customers had postponed their orders to later this year owing to tariff uncertainty. In May, Mattel outlined plans to fully mitigate tariff costs in 2025 through a combination of price hikes and diversifying its supply chain. 'We estimate the tariff exposure this year, based on current tariff levels, and before any mitigation actions, is less than US$100mil,' Kreiz said on Wednesday. Mattel reported a quarterly 6% drop in net sales to US$1.02bil, missing analysts' estimate of a 2.7% decline to US$1.05bil, according to data compiled by LSEG. The weakness was driven by a 16% fall in North America sales, primarily due to fewer new product launches for Barbie and delayed inventory decisions by retailers. Adjusted profit came in at 19 US cents per share, compared with the estimate of 15 US cents apiece. — Reuters
Business Times
6 days ago
- Business
- Business Times
Mattel cuts 2025 forecast after two-month pause, hurt by tariff uncertainties
TOYMAKER Mattel cut its annual forecast, reinstating it after two months, and posted a sharp drop in second-quarter revenue on Wednesday, as weak Barbie sales in North America and global trade uncertainties weighed on demand. The Hot Wheels parent had pulled its sales and profit forecasts in May, when US President Donald Trump's shifting trade policy upended global supply chains and cast uncertainty over consumer spending trends. CEO Ynon Kreiz told Reuters that timing shifts in retailer ordering patterns had an outsized impact on Mattel's US business during the second quarter. He expects that the company will recover most of its sales in the back half of the year. Shares of Mattel were down about 3.5 per cent in trading after the bell, as it also forecast lower 2025 gross margin compared to last year. Mattel now expects a rise in 2025 net sales of 1 per cent to 3 per cent, compared to its February target of a 2 per cent to 3 per cent increase. It forecast adjusted per-share profit between US$1.54 and US$1.66, below its prior estimate of US$1.66 to US$1.72 apiece. Adjusted gross margin is expected to be 50 per cent, compared to 50.9 per cent in 2024. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We believe the slowdown is being impacted by the current trade environment and the company's full-year margin guidance shows a larger-than-expected impact from tariffs,' CFRA analyst Zachary Warring said. Analysts have warned that retailers such as Walmart, Target and were limiting building up inventory going into the key holiday season to minimise exposure to higher tariffs. Earlier in the day, rival Hasbro raised its annual revenue outlook but warned that its US customers had postponed their orders to later this year owing to tariff uncertainty. In May, Mattel outlined plans to fully mitigate tariff costs in 2025 through a combination of price hikes and diversifying its supply chain. 'We estimate the tariffs exposure this year, based on current tariff levels, and before any mitigation actions, is less than US$100 million,' Kreiz said on Wednesday. Mattel reported a quarterly 6 per cent drop in net sales to US$1.02 billion, missing analysts' estimate of a 2.7 per cent decline to US$1.05 billion, according to data compiled by LSEG. The weakness was driven by a 16 per cent fall in North America sales, primarily due to fewer new product launches for Barbie and delayed inventory decisions by retailers. Adjusted profit came in at 19 cents per share, compared with the estimate of 15 cents apiece. REUTERS
Yahoo
6 days ago
- Business
- Yahoo
Mattel Stock Falls On Sales Miss, Guidance Cut: Tariffs Hit Barbie
Toy company Mattel Inc (NASDAQ:MAT) reported second-quarter financial results after market close Wednesday. Here are the key highlights. What Happened: Mattel reported second-quarter net sales of $1.019 billion, down 6% year-over-year. The net sales missed a Street consensus estimate of $1.068 billion according to data from Benzinga Pro. The company reported earnings per share of 19 cents, beating a Street consensus estimate of 17 cents per share. "Our second quarter performance reflects operational excellence in the current macroeconomic environment as we continue to execute our strategy to grow Mattel's IP-driven toy business and expand our entertainment offering," Mattel CEO Ynon Kreiz said. The CEO said Mattel saw "meaningful gross margin expansion" in the quarter, international growth and advanced its entertainment slate. Here were the second quarter gross billings by category: Dolls: $335 million, -19% year-over-year Infant, Toddler and Preschool: $143 million, -25% year-over-year Vehicles: $407 million, +10% year-over-year Action Figures, Building Sets, Games, and Other: $264 million, +16% year-over-year The company highlighted growth in Action Figures and Hot Wheels in the quarter. View more earnings on MAT Of note was a call out that Barbie saw declines in the quarter, which comes as the well-known doll became the center of a talking point on tariffs and people not being able to afford as many dolls during the holidays. Read Also: What's Next: Mattel lowered its full-year guidance. The company expects full-year earnings per share to be in a range of $1.54 to $1.66, versus prior guidance of a range of $1.66 to $1.72. The company widened its full-year sales forecast with a new estimate of 1% to 3% year-over-year growth, versus a prior guidance of 2% to 3% growth. This puts the new sales guidance range at $5.434 billion to $5.541 billion, versus a prior range of $5.488 billion to $5.541 billion. The company said the guidance today is based on what it knows today, but is subject to "market volatility" and "further regulatory actions impacting global trade." MAT Price Action: Mattel stock is down 4.46% to $19.30 in after-hours trading Wednesday versus a 52-week trading range of $13.95 to $22.06. Read Next: • Photo: rblfmr via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MATTEL (MAT): Free Stock Analysis Report This article Mattel Stock Falls On Sales Miss, Guidance Cut: Tariffs Hit Barbie originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
Mattel cuts 2025 forecast after two-month pause, hurt by tariff uncertainties
July 23 (Reuters) - Toymaker Mattel (MAT.O), opens new tab cut its annual forecast, reinstating it after two months, and posted a sharp drop in second-quarter revenue on Wednesday, as weak Barbie sales in North America and global trade uncertainties weighed on demand. The Hot Wheels parent had pulled its sales and profit forecasts in May, when U.S. President Donald Trump's shifting trade policy upended global supply chains and cast uncertainty over consumer spending trends. CEO Ynon Kreiz told Reuters that timing shifts in retailer ordering patterns had an outsized impact on Mattel's U.S. business during the second quarter. He expects that the company will recover most of its sales in the back half of the year. Shares of Mattel were down 4.5% in volatile trading after the bell, as it also forecast lower 2025 gross margin compared to last year. Mattel now expects a rise in 2025 net sales of 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate of $1.66 to $1.72 apiece. Adjusted gross margin is expected to be 50%, compared to 50.9% in 2024. "We believe the slowdown is being impacted by the current trade environment and the company's full-year margin guidance shows a larger-than-expected impact from tariffs," CFRA analyst Zachary Warring said. Analysts have warned that retailers such as Walmart (WMT.N), opens new tab, Target (TGT.N), opens new tab and (AMZN.O), opens new tab were limiting building up inventory going into the key holiday season to minimize exposure to higher tariffs. Earlier in the day, rival Hasbro (HAS.O), opens new tab raised its annual revenue outlook but warned that its U.S. customers had postponed their orders to later this year owing to tariff uncertainty. In May, Mattel outlined plans to fully mitigate tariff costs in 2025 through a combination of price hikes and diversifying its supply chain. "We estimate the tariffs exposure this year, based on current tariff levels, and before any mitigation actions, is less than $100 million," Kreiz said on Wednesday. Mattel reported a quarterly 6% drop in net sales to $1.02 billion, missing analysts' estimate of a 2.7% decline to $1.05 billion, according to data compiled by LSEG. The weakness was driven by a 16% fall in North America sales, primarily due to fewer new product launches for Barbie and delayed inventory decisions by retailers. Adjusted profit came in at 19 cents per share, compared with the estimate of 15 cents apiece.
Bloomberg
12-06-2025
- Business
- Bloomberg
Mattel Taps OpenAI to Help it Design Toys, Other Products
Polly Pocket may one day be your digital assistant. Mattel Inc., the maker of Barbie dolls and Hot Wheels cars, has signed a deal with OpenAI to use its artificial intelligence tools to design and in some cases power toys and other products based on its brands. The collaboration is at an early stage, and its first release won't be announced until later this year, Brad Lightcap, OpenAI's chief operating officer, and Josh Silverman, Mattel's chief franchise officer, said in a joint interview. The technology could ultimately result in the creation of digital assistants based on Mattel characters, or be used to make toys and games like the Magic 8 Ball or Uno even more interactive. 'We plan to announce something towards the tail end of this year, and it's really across the spectrum of physical products and some experiences,' Silverman said, declining to comment further on the first product. 'Leveraging this incredible technology is going to allow us to really reimagine the future of play.' Mattel isn't licensing its intellectual property to OpenAI as part of the deal, Silverman said, and remains in full control of the products being created. Introductory talks between the two companies began late last year, he said. Mattel Chief Executive Officer Ynon Kreiz has been looking to evolve the company from just a toy manufacturer into a producer of films, TV shows and mobile games based on its popular characters. OpenAI, meanwhile, has been courting companies with valuable intellectual property to aid them in developing new products based on iconic brands. 'The idea exploration phase of creative design for companies like Mattel and many others, that's a critical part of the workflow,' Lightcap said. 'As we think about how AI builds tools that extend that capability, I think we're very lucky to have partners like Mattel that we can work with to better understand that problem.' On Tuesday, OpenAI released its newest model — o3-pro — which can analyze files, search online and complete other tasks that made it score especially well with reviewers on 'comprehensiveness, instruction-following and accuracy,' the company said.
