Mattel reported fourth-quarter 2025 net sales of $1.77 billion, a 7% increase year-over-year, with diluted earnings per share of $0.34. For the full year 2025, net sales declined 1% to $5.35 billion, with earnings per share of $1.24, as the company faced profitability headwinds and weaker performance in key categories.
Key Highlights
- Worldwide gross billings for the Vehicles category surged 20% to $652 million in the fourth quarter, primarily driven by strong growth in Hot Wheels.
- Gross margin contracted significantly by 480 basis points to 45.9%, which the company attributed to higher discounts, inflation, and unfavorable foreign exchange.
- For the full year 2025, the Infant, Toddler, and Preschool category was a notable weak point, with gross billings declining 17% as reported.
- The Board of Directors authorized a new $1.5 billion share repurchase program, which is expected to be completed by 2028.