Mattel has reported sales growth for the first quarter, but management is concerned about the uncertain macroeconomic environment as a result of recent tariff changes.

The company’s net sales for the quarter ended March 31 rose 2 per cent to $827 million (up 4 per cent in constant currency). The increase was driven by a 3 per cent increase in North America and a 1 per cent uplift in international markets. 

The company’s operating loss was $53 million, an increase of $17 million, primarily due to an increase in selling and administrative expenses, partially offset by higher net sales and gross margin. Its net loss rose 42 per cent to $40 million.

While chairman and CEO Ynon Kreiz considered the first-quarter results “positive” and “strong”, the company has paused its full-year guidance given the volatile macroeconomic environment and evolving US tariff situation.

“Although tariffs did not affect Mattel’s first quarter financial results, the company is taking mitigating actions designed to fully offset the potential incremental cost impact of tariffs on future performance,” management stated.

These measures include diversifying the supply chain and further reducing reliance on China-sourced products, optimising product sourcing and mix, and taking necessary “pricing action” in its US business.

The company reported a 1 per cent sales decline last year, but its net income surged to $542 million.