Key facts
- Mattel now expects fiscal 2026 sales to grow 1% to 4%, down from a prior 3% to 6% projection.
- Mattel lowered its annual adjusted profit forecast to $1.05 to $1.20 per share from $1.27 to $1.39.
- Third-quarter net sales rose 4% to $1.81 billion, missing analysts' expectations of $1.84 billion, per LSEG data.
- Adjusted earnings of $1.30 per share topped estimates of 94 cents.
- Adjusted gross margin expanded to 55.0% from 50.2% a year earlier, aided by $88 million in tariff refunds.
- Mattel named insider Steve Totzke as chief operating officer, effective November 11.
Mattel on November 5 lowered its fiscal 2026 sales growth forecast to a range of 1% to 4%, down from a previous projection of 3% to 6%, and cut its annual adjusted profit forecast to between $1.05 and $1.20 per share from $1.27 to $1.39. The revision comes ahead of the holiday season and as new CEO Roger Lynch takes on the turnaround of the Barbie maker.
Lynch assumed the role earlier in the week after longtime CEO Ynon Kreiz left in October. The company also named Peter Griffith finance chief to succeed Paul Ruh, and on November 5 named insider Steve Totzke as chief operating officer, effective November 11.
"I also see clearly where we must improve. We will focus our resources on our greatest opportunities," Lynch said in a statement.
For the quarter ended September 30, net sales rose 4% to $1.81 billion but missed analysts' expectations of $1.84 billion, according to LSEG data. Adjusted earnings of $1.30 per share topped estimates of 94 cents. Adjusted gross margin expanded to 55.0% from 50.2% a year earlier, aided by $88 million in tariff refunds.
Mattel is pursuing an IP-forward strategy aimed at expanding brands such as Barbie, Hot Wheels and UNO across entertainment, licensing and consumer products. Toymakers are navigating sluggish demand as US consumers struggling with higher energy costs cut back on discretionary spending. Shareholders including Ariel Investments and Southeastern Asset Management have urged Mattel to explore strategic alternatives, including a potential sale.