Shares of the California-based toymaker fell about 4% in extended trade, after it also missed quarterly sales estimates for the first time since March 2020.
Earlier this month, Hasbro Inc (HAS.O) tempered its full-year revenue outlook and warned that demand was starting to slip ahead of the festive season.
Mattel, meanwhile, expects demand to accelerate during the crucial holiday shopping season, but said it would conduct more promotions to remain competitive.
However, excluding items, the company earned 82 cents per share, beating estimates of 74 cents.
Reporting by Uday Sampath and Ananya Mariam Rajesh in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.