Mattel’s third quarter brought higher sales, gains across three of its four major product categories, and a changing of the guard in the executive suite.
Net sales rose 4% to $1.81 billion, with North America up 4% and international sales gaining 5%. Worldwide gross billings reflected continued strength in Hot Wheels, growing demand for games and action figures, and a boost from Netflix’s KPop Demon Hunters.
Vehicles gross billings increased 9% to $680 million, led by Hot Wheels, which posted a 7% gain.
Action Figures, Building Sets, Games, and Other climbed 12% to $451 million. Mattel cited growth in Games, including the contribution of its Mattel163 mobile games business, and Action Figures.
Dolls returned to growth, with gross billings up 4% to $703 million. Partner brands, including the addition of KPop Demon Hunters, helped counter continued declines in Barbie. Fisher-Price remained a trouble spot, contributing to a 16% drop in Infant, Toddler, and Preschool gross billings to $221 million.
The quarter also marked the arrival of Roger Lynch as Mattel’s new Chairman and CEO.
“My first few weeks leading Mattel have reinforced my belief in the company’s potential. I also see clearly where we must improve,” Lynch said.
His priorities include strengthening Mattel’s core toy brands, driving innovation, and taking a more disciplined approach to investment. Mattel also named Steve Totzke President and Chief Operating Officer.
On the financial side, gross margin improved 480 basis points to 54.8%, primarily reflecting $88 million in tariff refunds. Operating income increased $96 million to $476 million, while net income climbed to $354 million.
Mattel revised its 2026 outlook, projecting constant-currency sales growth of 1-4% and adjusted operating income of $500 million to $570 million. The forecast excludes tariff refunds recognized this year and any additional refunds received before year-end.
