Mattel, the maker of Barbie and Hot Wheels, reported third-quarter results that missed analyst expectations due to ongoing global tariffs impacting North American sales. Shares fell 4% in after-hours trading. Net income was $278 million, down from $372 million, with adjusted earnings per share at 89 cents. Sales fell 6% to $1.74 billion.

This marks the first time in three quarters that Mattel missed both earnings and revenue expectations. In response to tariffs, the company increased prices for some products in the U.S. Full-year guidance predicts net sales to rise between 1% and 3%, with earnings per share between $1.54 and $1.66. CEO Ynon Kreiz cited strong fundamentals despite U.S. challenges.

Tariffs have affected the toy industry, with half of Mattel’s global toy sales coming from the U.S. Sales in North America fell 12% in the third quarter, while international sales increased by 3%. Barbie and Fisher-Price sales declined, but Hot Wheels sales rose. Mattel is focusing on entertainment offerings and new technology, partnering with Netflix for “KPop Demon Hunters” merchandise.

Read more at CNBC: Mattel (MAT) earnings Q3 2025