Mattel cut its 2026 sales and adjusted earnings forecasts Nov. 5, 2026, lowering its targets ahead of the holiday selling season despite higher third-quarter revenue and profit.
Lower full-year targets
The toymaker’s third-quarter results put expected annual sales growth at 1% to 4% in constant currency and adjusted earnings at $1.05 to $1.20 a share.
Its preceding earnings release had maintained growth of 3% to 6% on the same currency basis and adjusted earnings of $1.27 to $1.39 a share. That earlier outlook also excluded potential tariff refunds, making the exclusion relevant to both forecasts.
The company also reduced its adjusted operating income target to $500 million to $570 million, compared with $580 million to $630 million in the earlier guidance.
Refunds lift the quarterly margin
Mattel reported quarterly sales of $1.807 billion, up 4%, and net income of $354 million. Its adjusted gross margin reached 55%, versus 50.2% a year earlier, primarily because of $88 million in tariff refunds, the company said.
The revised annual guidance excludes refunds already recognized and any additional refunds during the rest of 2026. The quarterly margin improvement therefore should not be read as the company’s full-year operating expectation.
Reuters reported the outlook reduction as Mattel pursues growth beyond conventional toy sales through entertainment, licensing and consumer products tied to brands including Barbie, Hot Wheels and UNO.