Mattel Inc. (MAT) saw its shares tumble 5.26% in after-hours trading on Tuesday following the release of its third-quarter earnings report, which fell short of analyst expectations. The disappointing results were primarily driven by weakness in the company's North American market.

The toy manufacturer reported third-quarter net sales of $1.736 billion, representing a 6% decrease compared to the same period last year. This figure missed the analyst consensus estimate of $1.835 billion. Adjusted earnings per share came in at $0.89, significantly below the expected $1.07. The company's North American segment was particularly hard hit, with sales declining by 12%, while international sales managed to grow by 3%.

Mattel CEO Ynon Kreiz attributed the challenges to shifting retail ordering patterns in the United States, where retailers moved from domestic import to direct shipping to have more flexibility in decision-making closer to the holiday season. Despite the setback, Kreiz expressed confidence in a strong fourth quarter, citing accelerated orders from U.S. retailers since the beginning of Q4 and growing point-of-sale data. The company maintained its full-year 2025 guidance, expecting robust topline growth in the final quarter of the year.