Mattel Revises Full-Year Sales Guidance Amid Mixed Brand Performance
During its third-quarter 2026 earnings call, Mattel (MAT) lowered its full-year net sales growth outlook to a range of 1% to 4% in constant currency. The company is facing headwinds from slowing retail store demand and leadership transitions, prompting management to focus on pricing discipline and aligning production with revised revenue targets. Despite the cautious guidance, certain segments show strength; Hot Wheels is approaching $2 billion in gross billings and is entering its ninth consecutive record year by expanding into new categories like building sets. Conversely, Barbie performance has lagged, leading leadership to prioritize operational fixes and audience expansion toward adult collectors. The company intends to re-anchor capital allocation toward core toy business projects that meet internal hurdle rates.