Mattel reported second-quarter 2026 net sales of $1.13 billion, up 10% year over year and 4.2% above the Zacks Consensus Estimate of $1.08 billion, while adjusted earnings fell to 1 cent per share from 21 cents a year earlier and missed the consensus estimate of 3 cents by 66.7%. Worldwide Vehicles gross billings increased 11% in constant currency to $463 million, mainly on Hot Wheels growth, and Action Figures, Building Sets, Games and Other gross billings rose 33% in constant currency to $358 million, helped by games, Mattel163 and action figures tied to theatrical releases. Adjusted gross margin declined 260 basis points year over year to 48.6%, with tariffs reducing margin by 170 basis points, inflation by 120 basis points, higher royalties by 110 basis points and foreign exchange by 60 basis points, while Mattel163 contributed 120 basis points of benefit and tariff-mitigation actions and Optimizing for Profitable Growth savings added another 80 basis points. Management reaffirmed full-year 2026 guidance for constant-currency net sales growth of 3% to 6%, adjusted operating income of $580 million to $630 million, adjusted earnings of $1.27 to $1.39 per share and adjusted gross margin of about 50%, with sequential improvement expected in the second half. The stock carries a Zacks Rank of 3, or Hold, with a Value Score of A and VGM Score of B, while its Growth Score of C and Momentum Score of D are less favorable.
Mattel IncAdjusted earnings missed estimates and margin declined due to tariffs and inflation.
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