Why Hasbro Is Winning the Toy Wars and Mattel Isn’t

Mattel stock is falling further behind Hasbro, even as Mattel topped Wall Street's second-quarter sales estimate. Tariffs and heavier marketing spending erased its profit margin.

The results widen the gap with its rival. Hasbro's digital gaming and licensing bets keep paying off.

Net sales reached $1.12 billion, beating the $1.10 billion analysts expected. That figure came from data compiled by the London Stock Exchange Group (LSEG). Adjusted profit landed at just 1 cent per share, well short of the 4-cent estimate.

Mattel Stock Falls Behind as Tariffs Squeeze Margins

The miss came down to costs, not demand. Adjusted gross margin fell 260 basis points, or hundredths of a percentage point, to 48.6%. Mattel pointed to tariffs, inflation, higher royalty expenses, and unfavorable currency swings.

Advertising and promotion spending jumped 57% from a year earlier. Adjusted operating income fell 60% as a result. Mattel shares rose about 1% in after-hours trading, though they remain down 25% for the year.

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