Mattel reported an increase in second-quarter sales, but the company swung to a loss due to rising expenses. The toymaker posted a loss of $18.2 million, or 6 cents a share, a significant drop from the profit of $53.4 million, or 16 cents a share, recorded in the same period last year.

Excluding certain one-time costs, adjusted earnings were 1 cent per share, falling short of the 4 cents per share expected by analysts. Mattel attributed the decrease in profitability to increased advertising expenditures and higher selling, general, and administrative expenses.

These increased costs impacted the company's margins, although the rise in sales provided some partial offset. Despite the profit decline, the growth in sales indicates continued demand for Mattel's products in the market.