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- Operating Income Down $68m to $11m (new) — Operating income fell 86% year-over-year, indicating cost pressures are outpacing revenue gains.
- Barbie Sales Down 7% In Constant Currency (new) — Flagship brand decline suggests post-movie normalization is steeper than expected, raising questions about sustained momentum.
Mattel Q2 sales up 10% to $1.1B, but gross margin falls 270 bps and operating income drops $68M
Filed August 4, 2026 · Period ending August 4, 2026 · ~1 min read
Key Changes
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Q2 net sales rose 10% to $1,125M, but gross margin fell 270 bps to 48.2% on tariff costs, inflation, higher royalties, and unfavorable FX; operating income dropped $68M to $11M and the company posted a net loss of $18M vs. prior-year income of $53M.
Item 2.02 verify on EDGAR → -
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Brand performance mixed: Barbie down 7% in constant currency, Fisher-Price down 13%, while Hot Wheels grew 11% and Action Figures/Games surged 33% driven by Mattel163 digital games and theatrical releases including Masters of the Universe.
Exhibit 99.1 view on EDGAR → -
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Mattel reiterated full-year 2026 guidance: net sales +3% to 6% in constant currency, adjusted gross margin ~50%, adjusted operating income $580M-$630M, and adjusted EPS $1.27-$1.39 (below 2025's $1.49).
Exhibit 99.1 view on EDGAR → -
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Repurchased $100M of shares in Q2, bringing year-to-date total to $300M; reaffirmed full-year 2026 target of $400M in buybacks.
Exhibit 99.1 view on EDGAR →
Summary
Mattel's second quarter 2026 results show a company navigating a difficult transition: revenue grew 10% to $1.1 billion, but profitability collapsed under the weight of tariff costs, inflation, and higher royalties. Gross margin fell 270 basis points to 48.2%, operating income dropped $68 million to just $11 million, and the company swung to a net loss of $18 million.
The margin compression—driven by tariffs, inflation, and unfavorable foreign exchange—was only partially offset by cost savings and the Mattel163 digital games acquisition. Brand performance was uneven. Barbie, the flagship, declined 7% in constant currency as the post-movie cycle normalizes, and Fisher-Price fell 13%.
Hot Wheels grew 11%, and Action Figures/Games surged 33% on the strength of digital gaming and theatrical releases including Masters of the Universe. The shift underscores Mattel's dependence on a diversified portfolio as its largest brand cools. Mattel reiterated full-year 2026 guidance—net sales up 3% to 6%, adjusted gross margin around 50%, and adjusted EPS of $1.27 to $1.39—implying a strong second-half recovery. The company also repurchased $100 million of shares in the quarter, bringing year-to-date buybacks to $300 million and reaffirming its $400 million full-year target. For investors, the question is whether Mattel can deliver the margin improvement and second-half acceleration its guidance assumes, or whether tariff and cost pressures will persist and force a reset.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Mattel disclosed Q2 2026 financial results via press release.
Added in current filing · verify on EDGAR →
On August 4, 2026, Mattel, Inc. (“Mattel”) issued a press release regarding its second quarter 2026 financial results, a copy of which is furnished as Exhibit 99.1 hereto.
Mattel announced its second quarter 2026 financial results through a press release attached as Exhibit 99.1. The 8-K body does not contain the actual financial figures; those appear in the exhibit press release.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net Sales of $1,125 million, up 10% as reported, and 9% in constant currency •Gross Margin of 48.2%, a decrease of 270 basis points; Adjusted Gross Margin of 48.6%, a decrease of 260 basis points •Operating Income of $11 million, a decrease of $68 million; Adjusted Operating Income of $39 million, a decrease of $57 million •Net Loss of $18 million, compared to Net Income of $53 million •Loss per Share of $0.06 compared to Earnings per Share of $0.16; Adjusted Earnings per Share of $0.01 compared to $0.21 per share
Mattel's second quarter 2026 net sales grew 10% to $1,125 million, driven by 12% growth in North America and 9% internationally. However, profitability deteriorated sharply: gross margin fell 270 basis points to 48.2%, operating income dropped $68 million to $11 million, and the company posted a net loss of $18 million versus prior-year income of $53 million. The margin compression was primarily due to tariff costs, inflation, higher royalties, and unfavorable foreign exchange.
Added in current filing · view on EDGAR →
The decrease in Reported and Adjusted Gross Margin was primarily due to the gross incremental cost of tariffs, inflation, higher royalties, and unfavorable foreign exchange, partially offset by the contribution of Mattel163, and other, including tariff mitigation actions and cost savings.
The 270-basis-point decline in gross margin to 48.2% was driven by tariff costs, inflation, higher royalties, and unfavorable foreign exchange. These headwinds were only partially offset by the contribution from the Mattel163 acquisition and cost-saving initiatives. This indicates ongoing pressure on profitability from external cost factors.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 5, 2026 · How we verify