Mattel reported first quarter 2026 net sales of $862.2 million, a 4% increase year-over-year, and an adjusted loss per share of $0.20. The results beat analyst expectations for both revenue and EPS. The top-line growth was driven by a 15% increase in international sales, which offset a 3% decline in the North America segment.
Key Highlights
- The Vehicles category was a standout performer, with worldwide gross billings increasing 17% year-over-year to $361 million, led by continued strength in the Hot Wheels brand.
- Conversely, the Dolls category saw an 8% decline in gross billings to $272 million, primarily due to a 16% drop in the Barbie brand.
- Adjusted gross margin contracted by 450 basis points to 45.1%, which the company attributed to tariffs, unfavorable foreign exchange, and inflation.
- The company repurchased $200 million of its shares during the quarter and reaffirmed its full-year 2026 guidance.