Mattel cuts annual forecasts as new CEO takes charge
MAT•Mattel cut its fiscal 2026 sales growth forecast to 1% to 4% from 3% to 6%, and its adjusted profit forecast to $1.05 to $1.20 per share from $1.27 to $1.39. Third-quarter sales rose 4% to $1.81 billion, while adjusted earnings of $1.30 per share topped estimates.
1. Forecasts lowered
Mattel lowered its fiscal 2026 sales growth forecast to 1% to 4%, from 3% to 6%, and its adjusted profit forecast to $1.05 to $1.20 per share, from $1.27 to $1.39. The outlook excludes tariff refunds recognized so far this year and any additional refunds that may be received during the rest of 2026.
2. Quarterly results
Third-quarter net sales rose 4% to $1.81 billion, below analysts’ expectations of $1.84 billion. Adjusted earnings were $1.30 per share, above estimates of 94 cents. Adjusted gross margin expanded to 55.0% from 50.2%, aided by $88 million in tariff refunds.
3. Leadership changes
New CEO Roger Lynch took charge earlier this week after Ynon Kreiz left in October. Mattel named Amgen executive Peter Griffith finance chief and insider Steve Totzke chief operating officer, effective November 11. Shareholders including Ariel Investments and Southeastern Asset Management have urged the company to explore strategic alternatives, including a potential sale.
