Mattel reported fourth-quarter adjusted earnings of $0.39 per share. The company generated $1.8 billion in sales, representing a 7% year-over-year increase. Both figures missed analyst estimates of $0.55 per share and $1.84 billion in revenue. Gross margins fell 4.8 percentage points to 45.9%. Management cited tariff costs, inventory discounts, and holiday weakness as primary drivers for the margin compression.
For 2026, Mattel projects sales growth between 3% and 6%. The company expects adjusted earnings per share to drop by as much as 16% to fund strategic investments.
Mattel shares plummeted 25% on February 11, 2026, to close at $15.80. The drop represents the stock's worst performance since 1999. While Mattel struggled, shares of rival Hasbro surged. The stock recovered slightly to $15.90 in pre-market trading, up 0.63% amid a broader market rebound.