Toymaker Mattel cut its annual forecast and reported a sharp drop in second-quarter revenue due to weak Barbie sales in North America and global trade uncertainties. CEO Ynon Kreiz mentioned that timing shifts in retailer orders impacted U.S. business. Mattel expects to recover sales in the second half of the year.

Shares of Mattel fell about 3.5% after the bell as the company forecasted lower 2025 gross margin compared to last year. Mattel now expects a rise in 2025 net sales of 1% to 3% and adjusted per-share profit between $1.54 and $1.66, below prior estimates. Adjusted gross margin is expected to be 50%.

Analysts have warned that retailers like Walmart, Target, and Amazon are limiting inventory buildup ahead of the holiday season due to tariff uncertainty. Mattel outlined plans to mitigate tariff costs in 2025 through price hikes and diversifying its supply chain. CEO Kreiz stated that the estimated tariffs exposure this year is less than $100 million.

Mattel reported a 6% drop in net sales to $1.02 billion, driven by a 16% fall in North America sales. Adjusted profit came in at 19 cents per share, beating estimates. Rival Hasbro raised its annual revenue outlook but noted that U.S. customers had postponed orders due to tariff uncertainty.

Read more at Yahoo Finance: Mattel cuts 2025 forecast after two-month pause, hurt by tariff uncertainties