US toy giants Mattel and Hasbro face headwinds from trade policy and tariff pressures as the holiday rush draws near. However, both companies stay upbeat, hoping to close the year on a strong note despite the trade strain.
CEO Ynon Kreiz stated Mattel’s US business faced new hurdles as retailers changed their buying habits across the industry. He added that while the US business was challenged, fundamentals remained strong and consumer demand is resilient across all regions.
For the quarter ending September 30, Mattel’s global sales fell 6%, with North America dropping 12%. Still, overseas sales grew 3%, easing the local slump. Hot Wheels and figures from Jurassic World, Minecraft, and WWE led gains, while Barbie and Fisher-Price slowed.
Tariff delays, holiday orders pick up
Kreiz said US retailers delayed holiday orders amid tariff uncertainty and trade-policy concerns, but momentum has since picked up. He noted that since early Q4, orders from US retailers have surged. Stores now expect strong holiday demand and are restocking fast.
Meanwhile, rival Hasbro saw an 8% rise in quarterly revenue and raised its year-end outlook. Key drivers came from Peppa Pig toys, Marvel lines, and Wizards of the Coast games. CFO Gina Goetter said the firm managed tariff shifts quickly, using selective price hikes to protect profits.
Hasbro is managing tariff effects through pricing strategies, product mix, supply chain planning, and expense control. Like Mattel, Hasbro also faced delayed US orders but expects the holiday boost to carry through.
Consumer spending holds strong
Mattel CFO Paul Ruh said the firm adjusted prices and improved supply lines to ease tariff strain. He noted that Mattel continues to prioritise affordability and stable pricing for consumers. Kreiz added that demand stays strong despite the changes, noting that they’ve seen no major drop in buyer demand so far.
Hasbro CEO Chris Cocks also said that spending habits are split. While the top 20% of US buyers keep spending freely, others seem to cut back. This two-track pattern mirrors broader market shifts. In the meantime, players can also enjoy the Monopoly live game, which adds a live, interactive twist to the classic Hasbro board.
Both companies, Mattel and Hasbro, are reshaping supply chains to cope with tariffs. About half of Mattel’s toys come from China, which was hit hard by the US trade moves. Hasbro is splitting production, aiming for 30% of toy sales from China and 30% from US plants by 2026.
Pop culture partnerships boost holiday offerings
This holiday, both companies will tap pop culture ties. Mattel and Hasbro joined Netflix as co-master toy licensees for the 2025 hit film KPop Demon Hunters. Mattel plans to release dolls, figures, collectables, and playsets in 2026, with pre-sales for a three-pack starting November 12.
Meanwhile, Hasbro will launch plush toys, youth electronics, and role-play items from KPop Demon Hunters. Pre-sales for MONOPOLY Deal: KPop Demon Hunters began October 21, with shipments set for January 1, 2026, at $12.99.
Netflix CMO Marian Lee said fans can expect ‘the best dolls, games, and merchandise’ following strong demand. KPop Demon Hunters, which premiered on June 20 on Netflix, was directed by Maggie Kang and Chris Appelhans. This Sony-animated film quickly became the platform’s most-streamed movie worldwide, hitting 300 million views. This made history with a sing-along event that led the US weekend box office.
