🔹 Revenue: $1.74B (Est. $1.84B) 🔴; DOWN -6% YoY (–7% in constant currency)
🔹 EPS (Adj.): $0.89 (Est. $1.06) 🔴; DOWN -22% YoY
🔹 Net Income: $278M; DOWN -25% YoY
🔹 Operating Income: $380M (Adj. $387M); DOWN -22% YoY
🔹 Gross Margin: 50.0% (Est. 50.3%) 🔴; DOWN -310bps YoY
🔹 Adjusted Gross Margin: 50.2%; DOWN -290bps YoY
Guidance (Reiterated FY25)
🔹 Adj. EPS: $1.54–$1.66 (Est. $1.61) 🟡
🔹 Adj. Gross Margin: ~50% (Est. 50.3%) 🟡
🔹 Net Sales: +1% to +3% constant currency 🟡
🔹 Adj. Operating Income: $700M–$750M
🔹 Free Cash Flow: ~$500M
🔹 Adj. Tax Rate: 23%–24%
Segment Highlights (YoY)
🔹 Dolls: $674M; DOWN -11% as reported (–12% constant FX)
🔹 Infant, Toddler & Preschool: $262M; DOWN -25% (–26% constant FX)
🔹 Vehicles: $626M; UP +8% (+6% constant FX)
🔹 Action Figures, Building Sets, Games & Other: $404M; UP +11% (+9% constant FX)
Cash Flow & Capital Returns
🔹 Operating Cash Flow (9M’25): –$203M; LOWER YoY
🔹 Share Repurchases: $202M in Q3; $412M YTD
🔹 FY25 Target: $600M total repurchases
🔹 Cash Used for Investing: $98M; IMPROVED YoY
Management Commentary
🔸 “While our US business was challenged by retailer order delays amid tariff uncertainty, consumer demand remains strong globally.” — Ynon Kreiz, CEO
🔸 “Orders have accelerated since the start of Q4, and we expect a strong holiday season with topline growth.”
🔸 “We operated with excellence in a dynamic environment and remain on track to achieve our $600M share repurchase goal.” — Paul Ruh, CFO