Mattel misses Q2 profit estimates amid consumer spending slowdown

Mattel fell short of Wall Street's profit expectations for the second quarter, as consumers reduced discretionary spending amid a slowdown in the traditional toy market. The company reported an adjusted profit of 1 cent per share for the three months ended June 30, missing the consensus estimate of 4 cents per share. This decline in profit comes as consumers are cutting back on classic toys, favoring digital and tabletop games, and facing economic uncertainty that squeezes household budgets.

Despite the profit miss, Mattel's net sales for the quarter reached $1.12 billion, exceeding analysts' estimates of $1.10 billion. Advertising and promotion expenses increased by 11% during the period. The company has maintained its annual forecasts, expecting adjusted profit to be between $1.27 and $1.39 per share and net sales to grow by 3% to 6%.