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Mattel’s third-quarter net sales rose 4% to $1.81 billion, with growth in vehicles, games and action figures, and dolls returning to growth. Hot Wheels and the addition of KPop Demon Hunters supported results, while Infant, Toddler and Preschool billings fell 16%; tariff refunds also boosted gross margin.
Mattel’s third-quarter net sales climbed 4% to $1.81 billion, as growth in Hot Wheels, games and action figures helped offset continued declines in Barbie and a sharp drop in preschool products. The quarter also brought Roger Lynch’s arrival as chairman and CEO and a revised 2026 forecast from the toy maker.
Worldwide gross billings rose across three of Mattel’s four major product categories, according to the company results summarized by The Toy Book. Vehicles billings increased 9% to $680 million, led by a 7% gain for Hot Wheels. The combined category of Action Figures, Building Sets, Games and Other grew 12% to $451 million. Mattel attributed growth there to games, including its Mattel163 mobile-games business, and action figures.
Dolls billings rose 4% to $703 million, returning the category to growth. Mattel said partner brands, including the addition of Netflix’s KPop Demon Hunters, helped counter ongoing declines in Barbie. In contrast, Infant, Toddler and Preschool gross billings dropped 16% to $221 million, with Fisher-Price identified as a continuing weakness. Net sales rose 4% in North America and 5% internationally.
Mattel’s gross margin increased 480 basis points to 54.8%. The company said the improvement primarily reflected $88 million in tariff refunds. Operating income rose $96 million to $476 million, and net income reached $354 million. These results include the effect of refunds, so the quarter’s margin improvement should not be read as an operating gain from product sales alone.
The company projected 2026 constant-currency sales growth of 1% to 4% and adjusted operating income of $500 million to $570 million. Mattel said that forecast excludes tariff refunds recognized during the year and any additional refunds received before year-end. It also named Steve Totzke president and chief operating officer.
Growth Is Uneven Across Mattel’s Brands
The results show that Mattel’s sales growth is being carried by particular categories rather than shared evenly across its portfolio. Vehicles and games-related products advanced, while preschool billings contracted and Barbie continued to decline. For investors, retailers and licensing partners, that split matters: strong performance from a hit brand or category may not resolve weaker demand elsewhere.
The reported profit figures also include a material one-time factor. Tariff refunds contributed $88 million to the gross-margin improvement, while Mattel’s 2026 adjusted operating-income outlook excludes refunds. That distinction gives readers a clearer view of the company’s stated expectations without treating this quarter’s refund-supported margin as a recurring source of earnings.
Lynch’s appointment adds a leadership change to the financial update. His stated priorities—strengthening core brands, pursuing innovation and taking a more disciplined approach to investment—set out the areas he says need attention. The results do not yet show whether those priorities will change sales trends in Barbie or preschool products.
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Sales Gains and a Leadership Change
Mattel’s quarterly figures combine net sales, which were $1.81 billion, with category-level gross billings figures. The source report describes the latter as reflecting demand across products and notes gains in three of the four major categories. Those measures are related but should not be treated as interchangeable.
The quarter comes as Mattel changes its executive leadership. Roger Lynch took over as chairman and CEO, while Steve Totzke was named president and chief operating officer. Lynch described his first weeks as a period of evaluating both the company’s potential and areas needing improvement. His stated focus is on core toy brands, innovation and investment discipline.
The company’s revised annual outlook is for constant-currency growth, a measure that adjusts for exchange-rate effects. Mattel gave a range rather than a single sales-growth figure and separately provided an adjusted operating-income range. Its forecast excludes tariff refunds, which makes the stated outlook distinct from quarterly results that included refunds.
“My first few weeks leading Mattel have reinforced my belief in the company’s potential. I also see clearly where we must improve.”
— Roger Lynch, Mattel chairman and CEO
Barbie and Preschool Trends Persist
The supplied report does not provide a detailed breakdown of Barbie’s decline, including its size or how it compared with the prior quarter. It also does not specify whether the KPop Demon Hunters contribution is expected to continue at the same level or how much it contributed to dolls billings. The 4% category gain reflects partner brands alongside the ongoing Barbie decline.
The reasons behind the 16% drop in Infant, Toddler and Preschool billings are not quantified in the source. It identifies Fisher-Price as a weakness but gives no product-level figures, demand outlook or breakdown of the category’s decline. The report also does not say whether the $88 million in tariff refunds represents all refunds received to date or provide further detail about their timing.
Mattel’s sales and earnings ranges are forecasts, not confirmed full-year outcomes. The supplied material does not include the exact earnings announcement date, a full comparison of the outlook with prior guidance, or management’s detailed projections for each product category.
Watch the Full-Year Outlook
Mattel’s next reported results will show whether sales remain within the company’s projected 1% to 4% constant-currency growth range and whether adjusted operating income tracks toward $500 million to $570 million. The source does not give a date for its next earnings report, so the timing of that update is not confirmed here.
Readers can also watch for further quarterly detail on Barbie, Fisher-Price and KPop Demon Hunters, as well as any updates to Lynch’s priorities and the leadership team’s investment plans. Additional tariff refunds, if received before year-end, are outside the current outlook as described by Mattel and could affect reported results without changing the stated underlying forecast.
Key Questions
How much did Mattel’s sales increase in the third quarter?
Net sales rose 4% to $1.81 billion, according to the results summarized by The Toy Book. North American sales increased 4% and international sales rose 5%.
Which Mattel products drove growth?
Vehicles gross billings rose 9%, with Hot Wheels up 7%. Action Figures, Building Sets, Games and Other increased 12%, while dolls billings grew 4%, helped by partner brands that included KPop Demon Hunters.
Did every major Mattel category grow?
No. Three of the four major categories grew, but Infant, Toddler and Preschool gross billings fell 16% to $221 million. Mattel identified Fisher-Price as a continuing weakness.
How did tariff refunds affect Mattel’s results?
Mattel said $88 million in tariff refunds primarily contributed to gross margin rising 480 basis points to 54.8%. The company’s 2026 outlook excludes refunds already recognized and any additional refunds received before year-end.
What is Mattel forecasting for 2026?
Mattel projected constant-currency sales growth of 1% to 4% and adjusted operating income of $500 million to $570 million. The forecast excludes tariff refunds, according to the source report.
Source: toybook.com
