Mattel Q3 2026 Results Cut Outlook

Mattel Inc. (MAT) reported third-quarter 2026 results on Nov. 5, 2026, prompting the company to lower its full-year outlook. Management said a late-Q3 slowdown in point-of-sale demand extended into the holiday quarter, even as margins benefited from tariff refunds.

Mattel Third-Quarter Results

Mattel’s third-quarter net sales reached $1,807 million, up 4% as reported and 3% in constant currency from the prior year. GAAP operating income rose $96 million to $476 million, while adjusted operating income increased $106 million to $502 million. Net income climbed $75 million to $354 million. Reported earnings per share were $1.23, with adjusted EPS at $1.30.

GAAP gross margin was 54.8% and adjusted gross margin 55.0%, each improving by 480 basis points. The company attributed this primarily to $88 million in tariff refunds that lowered cost of goods sold. Mattel described these results as preliminary pending its Form 10-Q filing with the SEC.

Guidance and Brand Trends

Management narrowed its fiscal 2026 targets, lowering net-sales-growth guidance to a 1%–4% range from 3%–6%. Adjusted operating income guidance was reset to $500 million–$570 million, and adjusted EPS guidance trimmed to $1.05–$1.20 from $1.27–$1.39. The revised EPS outlook excludes tariff refunds recognized so far this year.

Chief Financial Officer Peter Griffith said point-of-sale demand remained positive but fell short of expectations, with a slowdown late in Q3 continuing into Q4.

Brand-level gross billings diverged in the quarter. Barbie declined 9%, Fisher-Price fell 14%, and Hot Wheels rose 7%. Vehicles, challenger categories, and dolls contributed to growth, while infant, toddler, and preschool products declined. Constant-currency gross billings increased 4% in North America, 3% in Europe, the Middle East, and Africa, and 15% in Asia Pacific; Latin America declined 3%.

Roger Lynch became chairman and chief executive after Ynon Kreiz’s October departure. The company also promoted Steve Totzke to chief operating officer. Lynch outlined priorities to strengthen brands, improve execution, and selectively invest for profitable growth. He said, “My first few weeks leading Mattel have reinforced my belief in the company's potential. I also see clearly where we must improve.” Management noted Hot Wheels was approaching $2 billion in gross billings and on track for a ninth consecutive record year.

The company did not report any merger, acquisition, government approval, exchange notice, or other transaction-specific regulatory action alongside the results.

Mattel plans to provide 2027 guidance with its fourth-quarter 2026 results in February 2027.