Mattel’s third quarter results were met with a negative market reaction, as the company missed Wall Street’s expectations for both revenue and adjusted earnings. Management pointed to ongoing shifts in retailer order patterns in the U.S., which contributed to a decline in reported sales and lower operating margins. CEO Ynon Kreiz acknowledged, “Our U.S. business was again challenged by industry-wide shifts in retailer ordering patterns.” Despite these headwinds, consumer demand for Mattel products increased in every region, with point-of-sale (POS) growth reported even in the U.S. Management also highlighted continued progress in international markets and resilience in key categories such as vehicles and challenger brands.

Is now the time to buy MAT? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Mattel’s Q3 Earnings Call

• Megan Clapp (Morgan Stanley) asked if Mattel could quantify POS growth versus billings and how much retailer destocking could be recaptured in Q4. CFO Paul Ruh explained that POS outpaced billings and that retailer restocking trends were encouraging for the fourth quarter.
• Arpine Kocharyan (UBS) questioned what was driving the acceleration in U.S. retailer orders and whether the current pace was sufficient to meet guidance. Ruh detailed how retailers’ shift to domestic shipping allowed more flexibility and confirmed that current orders were tracking in line with expectations.
• Stephen Laszczyk (Goldman Sachs) inquired about international growth sustainability and U.S. market share gains. CEO Ynon Kreiz emphasized consistent international gains and noted share growth in key U.S. categories like dolls, vehicles, and action figures.
• Alex Perry (Bank of America) sought clarity on content support for Q4 and the annualized impact of tariffs. Kreiz outlined upcoming entertainment releases and clarified that the impact of tariffs was largely addressed, with consumer demand remaining resilient.
• Kylie Nicole Cohu (Jefferies) asked when Barbie would return to growth and for more detail on the K-Pop Demon Hunters license. Kreiz indicated improving trends for Barbie in Q4 and highlighted the multiyear potential of the new Netflix licensing partnership.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the normalization of retailer ordering patterns and their impact on U.S. sales recovery, (2) the rollout and consumer reception of new products and entertainment tie-ins, and (3) management’s ability to offset tariff and inflation pressures through cost controls. Progress in digital gaming and execution on recently announced licensing partnerships will also be important markers for Mattel’s longer-term growth.

Mattel currently trades at $18.91, in line with $18.85 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.