Mattel Q2 Results Overview
Mattel Inc. (NASDAQ:MAT) announced its second‑quarter 2026 financial performance, reporting adjusted earnings per share of $0.01, which missed the analyst consensus estimate of $0.05. Revenue for the quarter was $1.13 billion, exceeding the consensus forecast of $1.10 billion, and the stock gained 1.2% in after‑hours trading.
Net sales rose 10% year‑over‑year, equivalent to a 9% increase on a constant‑currency basis. The growth was driven by a 12% rise in North America sales and a 9% increase in international markets. Despite the sales expansion, the company recorded a net loss of $18 million, contrasting with a net profit of $53 million in the comparable period of the prior year.
Adjusted gross margin declined to 48.6% from 51.2% in the prior‑year quarter, reflecting higher tariff costs, inflationary pressures, increased royalty payments, and unfavorable foreign‑exchange movements. Adjusted operating income fell to $39 million, down from $96 million a year earlier, due to higher advertising spend and SG&A expenses alongside the margin compression.
By product category, gross billings for Vehicles grew 14% to $463 million, propelled by Hot Wheels performance. Action Figures, Building Sets, Games and other categories together rose 35% to $358 million, supported by theatrical releases and digital game tie‑ins. Dolls declined 5% to $318 million, reflecting weaker Barbie sales, while the Infant, Toddler and Preschool segment fell 11% to $128 million.
Mattel reaffirmed its full‑year 2026 guidance, projecting adjusted EPS in the range of $1.27 to $1.39, with a midpoint of $1.33 that aligns with analyst consensus. The company expects net sales growth of 3% to 6% on a constant‑currency basis and adjusted operating income between $580 million and $630 million. It also maintained its commitment to repurchase $400 million of shares during the year, having completed $300 million of buybacks to date.
"We continued to execute our multi‑year strategy to grow our IP‑driven play and family entertainment business in the second quarter with strong growth in Net Sales," said Ynon Kreiz, Chairman and Chief Executive Officer of Mattel.