Mattel maintains annual forecasts, misses quarterly profit estimate as higher costs squeeze margins

Shares of the company were up about 1% in after-market trading. They have fallen 25% so far this year.

Last month, rival Hasbro raised its annual revenue and profit forecasts on resilient demand for its digital gaming business and continued strength in "Magic: The Gathering".

The toymaker maintained its expectations for annual adjusted profit of between $1.27 and $1.39 per share and net sales growth of 3% to 6%.

The company said it did not include benefits from any potential U.S. import tariff refunds in its forecast.

"Revenue outlook appears increasingly achievable following a solid first half and positive consumer demand trends," Jefferies analysts said in a note.

They added that investors would focus on whether the ongoing tariff pressures and increased brand investment limit the company's ability to convert stronger sales into earnings growth.