Mattel Shares Drop Over 5% on Disappointing Holiday Sales Growth
Mattel shares fell over 5% after reporting holiday-quarter sales growth of just low single digits, missing analysts’ projections and highlighting weakness in its core toy segment. The underperformance in North American retail sales rattled investors and prompted multiple analysts to cut earnings and revenue forecasts for fiscal 2026.
1. Holiday Sales Miss Projections
Mattel announced holiday-quarter revenue growth in the low single digits, falling short of the consensus estimate and signaling softness in its core toy business. North American retail channels underperformed expectations, with sales volume declining year-over-year and inventory levels rising at key accounts. 2. Investor Reaction and Analyst Updates: The stock declined more than 5% in intraday trading as investors reacted to the sales shortfall. Several brokerage firms trimmed fiscal 2026 earnings estimates by as much as 10-15%, citing concerns over demand recovery and promotional pressure in the toy category.