Toymaker Mattel's Holiday Sales Slump, Stock Plunges 28% After Hours

Mattel's stock price plunged as much as 28% in after-hours trading after the toymaker reported that the much-anticipated holiday sales boom fell short of expectations and its 2026 profit outlook was also below forecasts. The company said sales during the critical weeks leading up to Christmas did not meet expectations, prompting the maker of Barbie dolls and Hot Wheels cars to increase discounts, which squeezed profit margins. Both Mattel's fourth-quarter sales and profits missed Wall Street expectations. After the results were released, Mattel's stock dropped $5.81 in after-hours trading to $15.25. After a slowdown in the third quarter, the fourth quarter started off well but failed to deliver the sales growth the company had hoped for. Mattel executives said price-sensitive consumers were looking for discounted goods, while retailers were cautious in managing inventory. Fourth-quarter sales rose 7% to $1.77 billion, below Wall Street's forecast of $1.84 billion. Due to increased discounts, tariff costs, and other factors, profits and gross margins declined sharply. Mattel also issued a lower-than-expected full-year performance outlook as the company plans to increase investment to boost sales. This result stands in stark contrast to rival Hasbro, which reported earnings earlier in the day. Hasbro said that during the holiday season, shoppers were willing to pay higher prices for toys, allowing the company to pass on tariff costs without seriously impacting demand.

Editor: Wang Yongsheng