Mattel ‘pauses’ FY25 guidance

Matter states: “The company is operating in an uncertain macro-economic environment with significant volatility, including changes in global trade policy and U.S. tariffs. Although tariffs did not affect Mattel’s (MAT) first quarter financial results, the company is taking mitigating actions designed to fully offset the potential incremental cost impact of tariffs on future performance. These include: Accelerating diversification of its supply chain and further reducing reliance on China-sourced product, Optimizing product sourcing and product mix, and Where necessary, taking pricing action in its U.S. business. The company also intends to rebalance promotional activity to drive cost efficiencies while maintaining sufficient support and is accelerating cost savings actions and increasing the 2025 savings target under the Optimizing for Profitable Growth program from $60 million to $80 million. Given the volatile macro-economic environment and evolving U.S. tariff landscape, it is difficult to predict consumer spending and Mattel’s U.S. sales in the remainder of the year and holiday season. The company is therefore pausing full-year 2025 guidance until Mattel has sufficient visibility. The company is maintaining its $600 million share repurchase target for 2025, in line with the company’s capital allocation priorities.”