As Hasbro highlighted in its Q2 report yesterday, ongoing trade negotiations between nations have hammered the toy industry, and Mattel is no exception. The iconic doll and toy vehicle manufacturer has reported that a decline in orders from North American retailers between April and June resulted in a 6% drop in global net sales for the second quarter. Here’s what else Mattel’s report had to say:

Q2 net sales: US$1.02 billion

Year-over-year change: Down 6% from US$1.08 billion 

Tariffs hurt domestic markets: Gross billings in North America slid by 15% to US$548 million, and Mattel received fewer orders from retailers in Q2 due to tariff threats. 

International upside: International gross billings were up by 9%, with sales bumps in APAC (16%), EMEA (8%), LatAm (5%).

Growth drivers: Global gross billings for vehicles increased 10% to US$407 million, while the action figures, building sets and games segment rose by 16% to US$264 million.

Needs improvement: Global gross billings for dolls were down 19% to US$335 million, with the infant, toddler and preschool segment dropping 25% to US$143 million.

Exiting businesses: Mattel will discontinue certain Baby Gear and Power Wheels ranges, but plans to pull back on the number of new Barbie product launches each year to maintain profitable lines. 

Upcoming entertainment strategies: Live-action feature films for the Masters of the Universe and Matchbox brands are set to premiere in theaters worldwide next year, followed by upcoming Hot Wheels, Monster High, Barbie and Whac-A-Mole movies in the coming years. 

Embracing AI: Mattel announced in Q2 that it will collaborate with OpenAI to develop new play experiences and AI-powered products that leverage its iconic toy brands. 

CEO’s closing remarks: “Our second-quarter performance reflects operational excellence in the current macroeconomic environment, as we continue to execute our strategy to grow

Mattel’s IP-driven toy business and expand our entertainment offering,” said chairman and CEO Ynon Kreiz in the report. “We are embracing technology and collaborating with world-class partners to bring our iconic brands to life in new ways and position Mattel for long-term success.”