Mattel shares plunged over 25% in extended trading Thursday after the toy manufacturer disclosed weaker-than-expected U.S. holiday sales. The dramatic drop wiped out more than a quarter of the company's market value in after-hours sessions following its earnings release.

Analysts had expected stronger performance from the Barbie maker after last year's blockbuster movie boosted brand awareness. Instead, sluggish demand for core products during the critical holiday shopping season dragged down results. The stock decline marks Mattel's steepest single-day loss in five years.

The disappointing figures come as retailers face pressured consumer spending on discretionary items. With inflation still elevated, many shoppers prioritized essentials over toys during the holiday period. Mattel's performance contrasts with rival Hasbro, which maintained its full-year outlook earlier this month.