Mattel revises sales outlook as Hot Wheels grows and Barbie declines

Mattel has lowered its full-year 2026 net sales growth outlook to between 1% and 4% in constant currency. During its third-quarter earnings call, the company reported net sales of $1.81 billion, a 4% increase, supported by a 5% rise in international sales and a 4% rise in North American sales.

Hot Wheels remains a primary driver of growth, approaching $2 billion in gross billings and expanding into new categories like building sets. However, the Barbie brand faces challenges, prompting management to focus on product lineup sharpening and targeting adult collectors to revitalize demand. Additionally, the Fisher-Price segment saw a 16% drop in gross billings for the infant, toddler, and preschool categories.

The quarter also marked a leadership transition, with Roger Lynch assuming the role of Chairman and CEO, and Steve Totzke named President and Chief Operating Officer. Management indicated a shift in capital allocation toward core toy businesses to drive cash returns. While operating income rose to $476 million, partly due to $88 million in tariff refunds, the company is adjusting production to align with reduced revenue targets amid softer retail trends.