Barbie-Maker Sees Cautious Consumers, Lowers Profit Forecast
By Reuters | 10 Feb, 2026

Mattel missed Q4 estimates and lowered full-year profit forecast below Wall Street projections, aims to build entertainment portfolio after Barbie Movie success.

Mattel on Tuesday forecast full-year profit below Wall Street expectations after missing fourth-quarter estimates, as weak discretionary spending weighed on toy demand.

Shares of the Hot Wheels maker were down about 4% after the bell

U.S. shoppers remained cautious through the key holiday season, traditionally a sales driver for toymakers, with inflation and economic uncertainty curbing purchases. 

Heavy promotional activity in December pressured margins, CEO Ynon Kreiz told Reuters, adding U.S. segment sales during the month grew "less than expected."

The company, which unveiled a $1.5 billion share buyback plan to be completed by 2028, said it had fully offset the U.S. tariff cost impact through measures including supply‑chain diversification and product optimization.

Mattel expects 2026 adjusted earnings per share of $1.18 to $1.30, below analysts' average estimate of $1.75, according to data compiled by LSEG.

Fourth-quarter net sales rose 7% to $1.77 billion, missing expectations of $1.84 billion. Adjusted earnings of 39 cents per share fell short of the 54 cents estimate.

ENTERTAINMENT PUSH

Mattel continues to expand beyond toys, aiming to build an entertainment portfolio around its brands. It hopes to repeat the success of the 2023 blockbuster "Barbie" with a live‑action "Masters of the Universe" film in June and the Matchbox movie on Apple TV in October.

The company said it would acquire the remaining 50% of Mattel163, a joint venture media games developer created with China's NetEase for $159 million, as it targets growth in self‑published digital gaming. 

"We're looking to capture the full value of our intellectual properties in high-margin, highly accrued areas," Kreiz said

"Especially when it comes to digital, we see that as an area where our brands lend themselves well to games and mobile games specifically."

Supported by about $150 million in revenue from the acquisition, Mattel forecast that sales this year would rise 3% to 6%. 

The company also announced a multi‑year licensing deal with Paramount Skydance to develop and market Teenage Mutant Ninja Turtles products starting in 2027.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila)