It was any brand’s worst nightmare, compounded by bad timing. Mattel’s packaging misprint, which led buyers of its “Wicked” movie dolls to a pornographic website, happened ahead of the crucial holiday shopping season, the busiest time of the year for the toymaker. And although the company was quick to issue an apology on Monday, the fallout could have lengthier repercussions for its business relationships, experts say.

“It’s a huge mistake, a huge social media gaffe and it is going to cost them,” said Lauren Beitelspacher, a professor of marketing at Babson College, noting the financial implication of redoing packaging. “It will be expensive, obviously just because of the time and amount of resources they were not planning to allocate to this kerfuffle.”

The “Wicked” dolls are no longer available for purchase on retailer websites including Target, Walmart and Macy’s.

Mattel did not respond to multiple requests for comment about the actions it is taking. Regardless of whether Mattel sends new packaging, products or stickers to stores—which are all costly endeavors for the manufacturer—retailers are still left with temporarily empty shelf space that they had previously reserved for the dolls, which depict versions of the Elphaba and Glinda characters ahead of the Nov. 22 film release.

“This is the busiest time of year for toy retailers,” said Beitelspacher, noting the problem of having empty space on the selling floor. “The long-term consequences of what this does to the retailer relationship is also consequential [for Mattel].”

The mistake could also damage Mattel’s reputation with movie studios, following its hugely successful rollout of “Barbie” with Warner Bros. Pictures last year. If studios are less inclined to team up with Mattel, that could open the door to rivals such as Hasbro and Spin Master, which have been honing their film strategies.

“I do wonder if other character franchises in the future will be a bit more skeptical to partner with Mattel,” Beitelspacher said.

Good first step

Despite the potential long-term implications with retailers and studios, most brand crisis experts said Mattel was smart to immediately issue an apology.

“We deeply regret this unfortunate error and are taking immediate action to remedy this,” read Mattel’s statement, which advised parents that the misprinted website is not appropriate for children.

“They released a statement quickly and faced the issue head-on and showed transparency, which ultimately can turn a slip-up into a salvageable situation,” said Drew Piers, a partner and managing director at Sachs Media, a PR firm that handles crisis management. He cautioned that Mattel now has to follow through: “The statement is a great first step but not the only step—moving forward with the solutions internally but not communicating them externally doesn’t do them any favors.”

In its apology, Mattel noted that customers should discard the packaging or cover up the link. That strategy, however, puts the onus on the customer to take care of the error rather than the company responsible, said Thom Fladung, managing partner at crisis communications firm Hennes Communications.

“From what they said, it sounds like it’s all on me—you bought it, you fix it, cover it up and get rid of it,” he said, adding that it’s understandable in the early stages of a crisis for Mattel not to know exactly what immediate action to take. “But I’d advise asserting more forcefully that you’re going to do something and promise to follow up with consumers,” he said.

Regardless of how Mattel continues to handle the fallout from its X-rated blunder, experts expect the company to reevaluate its process for printing and proofing, which can be ultimately beneficial.

“As a leader in licensed partnerships and collaborations, this is an opportunity for Mattel to strengthen cross-departmental checks and balances that can reinforce its commitment to quality, benefiting brand reputation in the long run,” wrote Julianna Sheridan, VP of precision and crisis communication at Matter Communications, in an email.