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Mattel (MAT) says higher prices in the U.S. will be a part of its tariff mitigation strategy. (00:23) Google(GOOG) (GOOGL) sets sights on Hollywood with film, TV production initiative - report. (02:16) Rite Aid files for second Chapter 11 bankruptcy, plus job cuts. (03:29)
This is an abridged transcript.
Mattel Inc. (NASDAQ:MAT) is down one half of a percentage point in premarket action after topping Q1 expectations and pausing its full-year guidance.
Net sales were up 2% year-over-year to $827 million in Q1 or 4% on a constant currency basis. The increase in net sales as reported was driven by a 3% increase in North America, and a 1% increase in the international business.
Worldwide gross billings for the dolls category were up 1% to $297 million, or 2% in constant currency, primarily driven by growth in Disney Princess and Wicked.
Worldwide gross billings for the Infant, Toddler, and Preschool category were down 6% to $126 million, primarily due to declines in Baby Gear & Power Wheels. Worldwide gross billings for the vehicles were $308 million, up 4% as reported primarily driven by growth in Hot Wheels. Meanwhile, worldwide gross billings for the action figures, building sets, and other categories were up 12% to $193 million, driven by growth in action figures, partly offset by a decline in building sets.
Mattel (NASDAQ:MAT) paused its 2025 guidance until it has greater visibility on the tariff scenario. However, the company outlined the tariff mitigation strategies it is deploying, including accelerating diversification of its supply chain and further reducing reliance on products from China.
In addition, the big holiday season is months away but the toy company mentioned it is taking pricing action in its U.S. business where necessary.
Shares of Mattel (MAT) fell 3.1% in postmarket trading on Monday after shedding 1.1% during the regular session.
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has its eye on Hollywood, as the tech giant has quietly launched a new film and TV production initiative called 100 Zeros.
Business Insider reported that the initiative is a multiyear partnership with Range Media Partners, a talent management and production company whose notable work includes the 2024 Bob Dylan biopic A Complete Unknown.
100 Zeros has been tasked with identifying projects that Google (NASDAQ:GOOG) can help fund or produce, with the aim of potentially supporting scripted and unscripted films and TV shows.
Google (NASDAQ:GOOGL) in April announced a partnership with Range Media for a program called "AI on Screen," to commission short films about the relationship between humanity and AI. The first two films Sweetwater and Lucid are set to release later this year.
Product placement isn't the main focus of 100 Zeros, although the initiative could help promote Google's (NASDAQ:GOOG) newer tech products and services.
The initiative's goal is to sell projects to traditional studios and not to leverage YouTube as a primary distribution platform, nor to recreate the platform's efforts to make original shows.
After being cleared by a judge to exit bankruptcy in June 2024 as part of a restructuring plan, Rite Aid (OTC:RADCQ) has begun Chapter 11 bankruptcy proceedings for a second time.
The drug store chain has worked with its current lenders to access $1.94B in new financing, enough to support the company during the sale process.
Rite Aid said it has been in "active discussions with multiple interested potential acquirers."
The drug store chain has been unable to secure additional funding to continue operating, CEO Matthew Schroeder told employees in a letter obtained by Bloomberg.
Job cuts are slated at its corporate HQ in Pennsylvania. The reduction is due to "the dramatic downturn in the economy," along with tariffs and increased costs from suppliers, Schroeder wrote.
Rite Aid formally exited its prior bankruptcy in September 2024.
The Wall Street Journal reported the company was considering a second bankruptcy in early April.
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India proposes zero-for-zero tariff deal on U.S. auto parts, steel - report
Catalyst watch:
The three-day Stripe Session event will begin in San Francisco. Notable speakers include Stripe (CEO) Patrick Collison, Jony Ive, and Meta Platforms (META) CEO Mark Zuckerberg.
Shareholders of Veren (VRN) and Whitecap Resources (OTCPK:SPGYF) will vote on the planned merger between the companies.
Advanced Micro Devices (NASDAQ:AMD) will hold its earnings conference call at 5pm. Analysts have the call circled for having the potential to take the sting off the Q1 report. Options trading implies a share price move of 9% after the report is released.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red. Crude oil is up 2.8% at $58/barrel. Bitcoin is down 0.6% at $94,000. Gold is up 1.2% at $3,376.
The FTSE 100 is down 0.2% and the DAX is down 1.4%.
The biggest movers for the day premarket: Upwork (NASDAQ:UPWK) +10% - Shares surged after the company beat Q1 expectations.
On today’s economic calendar:
FOMC Meeting Begins
8:30 am International Trade in Goods and Services
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
