Mattel’s first quarter results were met with a positive market reaction as the company outperformed Wall Street’s revenue and adjusted EPS expectations. Management pointed to broad-based category growth, especially in action figures, vehicles, dolls, and games. CEO Ynon Kreiz emphasized that gross margin expansion was supported by cost-saving initiatives and lower inventory management costs. Kreiz added, “Our business grew across most categories and geographies,” highlighting standout performances from brands like Hot Wheels and Disney Princess. Operational improvements and a diversified supply chain also contributed to stable margins, even as macroeconomic volatility persisted.

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

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 Mattel’s Q1 Earnings Call

• Arpine Kocharyan (UBS) pressed for details on the timeline and magnitude of tariff mitigation; CEO Ynon Kreiz and CFO Anthony DiSilvestro clarified that actions are designed to fully offset 2025’s expected cost impact, with supply chain shifts already underway.
• Stephen Laszczyk (Goldman Sachs) asked about Mattel’s confidence in passing price increases to retailers; Kreiz highlighted long-standing retail relationships and flexibility in price points, while DiSilvestro noted broad scenario planning for demand.
• Megan Clapp (Morgan Stanley) requested clarification on whether mitigation would fully offset tariffs in 2025 or over a longer term; DiSilvestro confirmed the goal is full offset within 2025.
• Kylie Cohu (Jefferies) questioned the extent of necessary pricing actions and price elasticity; DiSilvestro emphasized strategic pricing and noted that traditional elasticity studies may not fully apply given industry-wide impacts.
• Alex Perry (Bank of America) inquired about changes in retailer buying patterns and potential market share shifts; management reported no material cancellations or pull forwards, but noted direct import volatility and potential for share gains due to supply chain advantages.

Catalysts in Upcoming Quarters

Over the next few quarters, the StockStory team will closely monitor (1) the effectiveness and pace of Mattel’s supply chain diversification and ability to reduce reliance on China, (2) the company’s success in maintaining affordable pricing and gross margin despite tariff pressures, and (3) consumer demand trends—especially during the holiday season—amid macroeconomic uncertainty. Progress in expanding entertainment partnerships and launching new licensed products will also be key signposts.

Mattel currently trades at $19.47, up from $16.18 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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