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Barbie maker Mattel reveals huge decline in sales and revenue, as the toy manufacturer realizes donald trumpThe sweeping international tariffs — a worrying sign for the toy maker ahead of the busy holiday season.
metal Net sales fell 6 percent to $1.74 billion in the third fiscal quarter of 2025, down from wall StreetExpectations of. The company reported net income of $278 million, Down from $372 million a year earlier – a decrease of $94 million.
The company noted on Tuesday earnings report he worldwide gross billing (sales to retailers before adjustments) for dolls were $674 million and declined 12 percent overall, leading to barbie – one of its top earners. Gross billings for Barbie declined 17 percent and Fisher-Price reported a 19 percent decline, although an 8 percent increase for Hot Wheels offset the losses slightly.
According to CNBC, this is the first time that Mattel has missed both earnings and revenue expectations in three fiscal quarters.
The toy industry is one of the countries most affected by the President’s global tariffs, as it has a large reliance on goods coming from China – making it one of the countries most affected by the tariffs announced by the President. Trump set tariffs – costs that are typically passed on to the consumer – and that has increased the cost of those products.
Toy companies and retailers also often use the second and third quarters to stock products before the holiday season.
according to The Associated Press, 80 percent of toys sold in America come from China.
Uncertainty over the extent of the levies has caused retailers — including Target and Walmart — to delay their orders from manufacturers like Mattel.
In May the president threatened to impose 100 percent tariffs on the company after it said it would diversify its production to other countries, but not the US.
“That’s fine. Let him go, and we’ll put a 100 percent tariff on his toys, and he won’t sell a single toy in the United States, and that’s their biggest market,” Trump said in response to the announcement by Mattel’s chairman and CEO, Jon Kraus.
After Tuesday’s earnings report, Craze said: “Although our U.S. business was challenged in the third quarter by industry-wide changes in retailers’ order patterns, the fundamentals of our business remain strong, driven by increased consumer demand for our products in every region.”
However, he said, orders from retailers in the US have accelerated “significantly” since the start of the fourth quarter.
“Looking at the balance of the year, we expect a good holiday season for Mattel and strong revenue growth in the fourth quarter,” Krause said.
Also, earlier Tuesday it was announced that Mattel had won part of a licensing deal with Hasbro for toy production on Netflix’s smash hit “Kpop Demon Hunters.” Under the terms of the deal Mattel will develop toys including dolls, action figures, accessories and collectibles.
Mattel’s troubles come against the backdrop of Trump’s ongoing trade war with China, which has resulted in record-breaking increases in the prices of toys and games in the US.
In June it was reported that toys, games and playground equipment saw a 2.2 percent increase in prices between April and May, according to Bureau of Labor Statistics data, which analysts predicted would be bad for the industry in the long run.
The doll segment of the industry, which includes accessories such as clothing, generated US sales of $2.7 billion last year, compared with $2.9 billion in 2023 and $3.4 billion in 2019, according to market research firm Circana.