Mattel has reported lower sales for the second quarter, driven by a double-digit decline in the North America market.

The company’s net sales for the quarter ended June 30 fell 6 per cent to $1 billion, with a 16 per cent drop in North America more than offsetting a 7 per cent increase in international markets.

Management cited headwinds including global trade dynamics and timing shifts in retailer ordering patterns that impacted the US business. 

By category, action figures and vehicles saw an uplift in sales while dolls and infant, toddler, and preschool products reported declines.

On the bottom line, operating income decreased 6 per cent to $78.5 million and net income also fell 6 per cent to $53.4 million.

“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.

The company has lowered its full-year outlook after postponing last quarter due to tariff concerns. Net sales are now expected to grow 1-3 per cent, compared to the prior guidance range of 2-3 per cent.