Mattel (MAT) Goldman Sachs Global Consumer and Retail Conference summary

Industry overview and demand trends

• Toy industry experiencing double-digit growth, led by games, trading cards, action figures, vehicles, and building sets.

• Toys remain a strategic category for retailers, with growth driven by both unit sales and pricing.

• Retailer ordering patterns have stabilized, shifting more sales momentum to Q4.

• Inventory levels are appropriate, reducing the need for heavy promotions compared to last year.

• Adult fans and collectors are becoming a significant growth segment in the industry.

Financial performance and guidance

• Confident in achieving full-year guidance, with approximately 50% gross margin targeted.

• Higher inflation in commodities, packaging, labor, and shipping is offset by favorable forex and lower tariffs.

• SG&A and advertising expenses are being managed judiciously, with a shift to brand-building campaigns spread more evenly throughout the year.

• Most gross margin and sales improvement expected in Q4 due to normalized promotional environment.

• Received $90 million in tariff refunds, with plans to prioritize brand-building activities.

Brand strategy and growth drivers

• Hot Wheels continues to expand into new categories, content, and demographics, on track to exceed $2 billion in sales.

• Brand-centric strategy leverages a flywheel effect between toys, entertainment, and merchandise.

• Investments focus on mobile games, first-party data, DTC, trading cards, and building sets.

• Mattel Brick Shop and trading cards identified as key growth areas, with strong demand and capacity investments.

• Emotional connection and fandom are central to expanding brand engagement and driving growth.