Mattel Shares Plunge Over 20% After Holiday Sales Grow Only Low Single Digits
Mattel shares plunged over 20% on February 11, marking the steepest one-day decline since 2000 after holiday sales grew by low single digits versus a roughly 5% analyst forecast. Weak retail demand during the key season weighed on core toy categories and triggered heavy investor selling.
1. Shares Plunge on Sales Miss
On February 11, Mattel stock tumbled over 20%, its largest one-day percentage decline since 2000, following a holiday sales report that showed growth in the low single digits. The result fell short of the near-5% growth analysts had anticipated, sparking a sharp sell-off.
2. Holiday Sales Performance
Holiday revenue growth of only low single digits reflected slower retail sell-through across key lines such as dolls and die-cast vehicles. Management noted that discounting and inventory constraints dampened consumer demand during the critical season.
3. Market Reaction and Outlook
Investors responded to the sales miss by offloading stock, while several analysts cut price targets and earnings estimates for 2026. Market commentary highlights the need for Mattel to revive marketing investments and streamline supply chain operations to regain consumer interest.