Mattel is addressing challenges from tariffs that have led to a decline in gross margins in Q3, as noted by CFO Paul Ruh. Retailers are adapting by shifting from direct imports to domestic shipping, requiring Mattel to manage the logistics. This has resulted in more frequent orders and a $89 million increase in inventory, totaling $827 million. While retailers are restocking for the holiday season, Ruh anticipates that the full impact of tariff costs will manifest in Q4, although pricing strategies to mitigate these costs are yet to be determined.

Source: https://www.supplychaindive.com/news/mattel-tariff-mitigation-holiday-sales/803779/