Mattel Reports Slight Decline in Net Sales for Fiscal Year 2024, Achieves Increased Gross Margin and Operating Income

Mattel, Inc. reported a slight decline in net sales for the fiscal year ending December 31, 2024, totaling $5.38 billion, down 1% from $5.44 billion in 2023. The decrease was attributed primarily to lower gross billings in the Dolls and Infant, Toddler, and Preschool categories, which were partially offset by increased sales in Vehicles and Action Figures. Despite the decline in sales, the company achieved a gross margin of 50.8%, an increase from 47.5% in the previous year, driven by operational efficiencies and cost deflation. Operating income rose to $694.3 million, up 24% from $561.7 million in 2023, while net income surged to $541.8 million, a 153% increase compared to $214.4 million in the prior year.

In terms of strategic developments, Mattel has initiated the Optimizing for Profitable Growth (OPG) program, which aims to generate annual gross cost savings of $200 million by 2026. The company reported approximately $83 million in savings from this program in 2024. Additionally, Mattel integrated its American Girl business into its North America commercial organization, resulting in a reclassification of its operating segments. The company also made significant investments, including $58.8 million for a new global design center in El Segundo, California.

Operationally, Mattel's workforce comprised approximately 34,000 employees as of December 31, 2024, with a significant portion located outside the United States. The company’s three largest customers—Walmart, Target, and Amazon—accounted for about 44% of total net sales, reflecting a stable customer concentration. The North America segment reported net sales of $3.17 billion, while the International segment generated $2.21 billion, both reflecting a 1% decrease from the previous year.

Looking ahead, Mattel acknowledged potential challenges posed by macroeconomic conditions that could impact consumer demand. The company remains focused on leveraging its intellectual property to drive growth in both its toy and entertainment segments. Management expressed confidence in the ongoing execution of its strategic initiatives, including the OPG program, to enhance profitability and operational efficiency. However, they cautioned that any deterioration in the economic environment could materially affect future results.