The early-year toy industry growth experienced by Hasbro, Jakks Pacific and Spin Master continues, with Mattel reporting that its Q1 net sales rose 2% from the same period last year to US$827 million. 

In reporting its quarterly results after market close yesterday, chairman and CEO Ynon Kreiz said this was a strong quarter for the company as it continues to navigate the uncertain macroeconomic environment with “speed and discipline.” However, Mattel has paused its full-year guidance for 2025 and will be employing strategies to mitigate the cost impact of President Trump’s tariffs against China—including accelerating supply chain diversification, optimizing material sourcing and evaluating price increases in its US business. 

Breaking down Mattel’s results for the first three months of the year, action figures, building sets and games emerged as the strongest-performing category. Worldwide gross billings (the amount invoiced to customers) for this segment jumped 12% to US$193 million, driven by the rollout of A Minecraft Movie action figures. 

Vehicles were the runner-up during this sales period, with growth for Hot Wheels leading a 6% bump in gross billings to US$308 million. Meanwhile, the licensed Disney Princess and Wicked lines helped Mattel’s dolls category generate US$297 million in gross billing for Q1, up 1% from last year. 

But offsetting these gains was Mattel’s infant, toddler and preschool segment, which experienced a 6% decline in gross billings to US$126 million. The company attributes this decrease to weakening sales for Baby Gear and Power Wheels products. 

Looking ahead, Mattel plans to repurchase US$600 million worth of its shares this year and has increased its cost-savings target from US$60 million to US$80 million as part of its ongoing Optimizing for Profitable Growth program.