Nov. 5, 2026 — Mattel lowered its full-year sales and profit forecasts on Thursday ahead of the critical holiday shopping season, placing new CEO Roger Lynch under pressure to revive the Barbie maker’s performance amid sluggish consumer demand and growing shareholder scrutiny.
Shares of the toy company fell 4% in extended trading following the announcement.
Toymakers are facing a challenging holiday season as U.S. consumers contend with higher energy costs and reduce spending on discretionary products. Mattel is now looking to strengthen its business beyond traditional toy sales by expanding its popular intellectual property across entertainment, licensing and consumer products.
“I also see clearly where we must improve. We will focus our resources on our greatest opportunities,” Lynch said in a statement.
Mattel Lowers 2026 Sales and Profit Expectations
Mattel now expects fiscal 2026 sales growth of between 1% and 4%, down from its previous forecast of 3% to 6%.
The company also reduced its annual adjusted earnings forecast to between $1.05 and $1.20 per share, compared with its earlier projection of $1.27 to $1.39 per share.
The revised outlook excludes the benefit of tariff refunds recognized so far this year, as well as any additional refunds the company may receive during the remainder of 2026.
The lower forecasts come at a critical time for the toy industry, which typically relies on holiday shopping demand to drive a significant portion of annual sales.
Higher household expenses, particularly energy costs, have pressured consumer budgets and made shoppers more cautious about nonessential purchases.
Third-Quarter Revenue Misses Estimates Despite Earnings Beat
Mattel reported third-quarter net sales of $1.81 billion for the period ended September 30, representing a 4% increase from the previous year.
However, revenue fell short of analysts’ expectations of $1.84 billion, according to LSEG data.
Adjusted earnings came in at $1.30 per share, comfortably above the 94 cents expected by analysts.
Adjusted gross margin also improved to 55.0%, compared with 50.2% a year earlier. The expansion was supported in part by $88 million in tariff refunds.
The results showed improved profitability, but the revenue shortfall and reduced annual outlook highlighted the challenges facing the company as it enters the holiday season.
New CEO Roger Lynch Faces Leadership Challenge
Lynch took charge earlier this week after longtime CEO Ynon Kreiz departed in October.
The leadership transition comes as Mattel works to address operational challenges, strengthen its brands and respond to growing investor pressure.
The company also appointed Amgen executive Peter Griffith as its finance chief, replacing Paul Ruh.
On Thursday, Mattel announced another leadership change, naming company insider Steve Totzke as chief operating officer, effective November 11.
The new appointments represent a broader management transition as Mattel seeks to reposition its business and improve performance.
Barbie, Hot Wheels and UNO Anchor Growth Strategy
Mattel is pursuing an intellectual-property-focused strategy designed to generate revenue from its most recognizable brands across multiple industries.
The company aims to expand Barbie, Hot Wheels and UNO through entertainment projects, licensing agreements and consumer products, creating additional opportunities beyond conventional toy sales.
The strategy is intended to make greater use of Mattel’s established brands and broaden their commercial reach.
However, the company must demonstrate that these opportunities can translate into stronger sales and sustainable earnings growth, particularly as traditional toy demand faces pressure.
Shareholders Push Mattel to Consider Strategic Alternatives
Mattel is also dealing with increasing pressure from some of its major shareholders.
Investors including Ariel Investments and Southeastern Asset Management have urged the company to explore strategic alternatives, including a possible sale.
The calls for broader strategic options add another challenge for Lynch as he takes over the company.
With annual forecasts now reduced, a leadership overhaul underway and investors seeking changes, Mattel faces a crucial period heading into the holiday shopping season.
The company’s ability to stabilize sales, protect margins and turn its established brands into broader entertainment and licensing opportunities will be central to its turnaround efforts.
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