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Mattel’s third-quarter net sales rose 4% to $1.81 billion, with gains in vehicles, action figures, games and dolls. Hot Wheels and the addition of KPop Demon Hunters helped support results, while Barbie continued to decline and Infant, Toddler, and Preschool billings fell 16%.
Mattel reported third-quarter net sales of $1.81 billion, up 4%, as Hot Wheels, games and action figures lifted sales and partner brands including KPop Demon Hunters helped dolls return to growth. The results also showed uneven performance across the company: Barbie continued to decline, while Infant, Toddler, and Preschool gross billings dropped 16%.
Sales rose in both major regions, with North America up 4% and international sales up 5%. Worldwide gross billings increased in three of Mattel’s four major product categories. Vehicles gross billings climbed 9% to $680 million, led by a 7% gain for Hot Wheels. Action Figures, Building Sets, Games, and Other rose 12% to $451 million, with Mattel citing growth in games—including its Mattel163 mobile games business—and action figures.
Dolls returned to growth: gross billings increased 4% to $703 million. Mattel attributed support in part to partner brands, including the addition of KPop Demon Hunters, which helped offset ongoing declines in Barbie. The weaker category was Infant, Toddler, and Preschool, where gross billings fell 16% to $221 million; the report identified Fisher-Price as a continuing trouble spot.
Mattel’s profitability also improved. Gross margin rose 480 basis points to 54.8%, primarily reflecting $88 million in tariff refunds, according to the report. Operating income increased by $96 million to $476 million, and net income reached $354 million. The company revised its 2026 outlook to forecast constant-currency sales growth of 1% to 4% and adjusted operating income of $500 million to $570 million.
Growth Depends on More Than Barbie
The results show how Mattel’s performance is being carried by a mix of established brands, games and licensed or partner properties, even as its best-known doll line remains under pressure. Hot Wheels’ 7% gain and the 12% increase across action figures, building sets, games and other products helped offset declines elsewhere. The addition of KPop Demon Hunters also contributed to the return of growth in dolls, but the report does not quantify that property’s individual sales impact.
For investors, retailers and suppliers, the category split matters as much as the headline sales increase. Growth in three of four major product categories suggests broad areas of strength, but the 16% decline in preschool billings points to a persistent weakness. Profit figures also need context: tariff refunds contributed to the margin improvement, and Mattel’s 2026 forecast excludes refunds already recognized this year as well as any further refunds received before year-end.
The leadership change adds another layer to the quarter. New Chairman and CEO Roger Lynch has said he sees room for improvement and named priorities that include strengthening core brands, innovation and more disciplined investment. The report does not yet show how those priorities will change product development or spending.
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A New CEO Takes the Helm
Mattel’s quarterly results arrived as Roger Lynch became chairman and CEO. He said his first weeks in the role reinforced his belief in the company’s potential while making clear that he sees areas where it needs to improve. Mattel’s stated priorities under Lynch include strengthening its core toy brands, driving innovation and applying greater discipline to investment.
The company also named Steve Totzke president and chief operating officer. The leadership moves accompany a quarter in which sales growth varied sharply by product line: vehicles, games and action figures advanced, dolls returned to growth, and preschool products declined. The reported figures provide a snapshot of those divisions, not a detailed plan for how management will address the weaker businesses.
Mattel’s revised 2026 outlook calls for 1% to 4% constant-currency sales growth and adjusted operating income of $500 million to $570 million. The forecast excludes tariff refunds recognized in 2026 and any additional refunds received before year-end, so the company’s stated operating outlook does not treat those refunds as recurring business performance.
“My first few weeks leading Mattel have reinforced my belief in the company’s potential. I also see clearly where we must improve.”
— Roger Lynch, Mattel chairman and CEO
Barbie and Preschool Remain Risks
The results do not specify the size of Barbie’s decline or how much KPop Demon Hunters contributed to dolls’ return to growth. Mattel also did not provide further detail in the source report on the causes of the 16% drop in Infant, Toddler, and Preschool billings or a recovery timeline for that category.
The outlook is a forecast, not a reported result. Its range excludes tariff refunds recognized this year and any further refunds received before year-end; the report does not say whether additional refunds will arrive. It also does not provide a detailed breakdown of how much of the quarter’s profit improvement came from refunds versus other factors beyond stating that the refunds primarily drove the higher gross margin.
Execution and Full-Year Results
Mattel’s next test will be whether it can sustain growth across vehicles, games and action figures while improving results in Barbie and preschool products. The company’s revised forecast sets a range for full-year constant-currency sales growth and adjusted operating income, but the source report gives no further quarterly milestones or specific turnaround targets for the weaker categories.
Investors and industry observers will also be watching how Lynch’s priorities translate into decisions on brands, new products and investment. Mattel’s outlook excludes tariff refunds received or recognized during the year, making those refunds separate from the operating performance represented by its forecast. The company’s subsequent results and management updates should provide more information on category trends and progress against the stated priorities.
Key Questions
How much did Mattel’s sales grow in the third quarter?
Net sales increased 4% to $1.81 billion. North America sales rose 4%, while international sales gained 5%.
Which Mattel products recorded the strongest reported growth?
Action Figures, Building Sets, Games, and Other gross billings rose 12% to $451 million. Vehicles gross billings increased 9% to $680 million, led by a 7% gain for Hot Wheels.
How did KPop Demon Hunters affect Mattel’s results?
Mattel cited the addition of KPop Demon Hunters as a partner brand that helped offset continued declines in Barbie as dolls returned to growth. The report does not quantify the property’s individual contribution.
What is Mattel forecasting for 2026?
Mattel forecast constant-currency sales growth of 1% to 4% and adjusted operating income of $500 million to $570 million. The outlook excludes tariff refunds recognized this year and any additional refunds received before year-end.
Who is Mattel’s new CEO?
Roger Lynch is Mattel’s new chairman and CEO. The company also named Steve Totzke president and chief operating officer.
Source: toybook.com
