Mattel Stock Earnings Reports

Mattel reported a solid start to 2026 with net sales up 4% (1% in constant currency) and gross billings up 2% (constant currency). Strength was led by vehicles (Hot Wheels, Disney/Pixar Cars), building sets (Mattel Brick Shop), Uno, Monster High and action figures; international sales grew while North America was down modestly but is expected to improve in Q2 as retailer ordering stabilizes. Mattel closed acquisition of the remaining 50% of Mattel163, accelerating its push into self-published mobile games (first Masters of the Universe game in soft launch ahead of the film). The company is making targeted strategic investments (~$150M in 2026, ~$110M excluding user acquisition) in digital games, building sets, B2C and first-party data aimed at driving higher growth and profitability in 2027 and beyond. Adjusted gross margin compressed in Q1 (45.1%, down ~450 bps) driven primarily by tariffs (≈240 bps), unfavorable FX (≈140 bps) and inflation (≈90 bps); management expects sequential margin improvement through the year and reaffirmed full-year adjusted gross margin of approximately 50%. Adjusted operating income and EPS were impacted (adjusted EPS loss of $0.20 for Q1) and adjusted operating income guidance was recast to $580M–$630M (adjusted EPS $1.27–$1.39) to exclude amortization of acquired intangibles in non-GAAP measures. Cash balance was $866M; company repurchased $200M of shares in the quarter (total $1.4B repurchased since 2023) and continues to target $400M of repurchases in 2026 under a $1.5B authorization. Management reiterated 2026 net sales growth guidance of 3%–6% (constant currency) and projected mid- to high-single-digit revenue growth and strong double-digit adjusted operating income growth in 2027. Leadership change: Sanjay Luthra will succeed Steve Totzke as Chief Commercial Officer effective May 1.