Mattel Lowers 2026 Forecasts Amid Leadership Transition
Mattel reduced its annual sales and profit projections due to sluggish holiday demand and high energy costs affecting U.S. consumer spending.
Mattel lowered its annual sales and profit forecasts for fiscal 2026 on Thursday, citing a decline in discretionary spending by U.S. consumers driven by high energy costs. The company now projects sales growth between 1% and 4%, a decrease from its previous estimate of 3% to 6%, and adjusted its profit forecast to between $1.05 and $1.20 per share.
This financial downturn occurs during a significant leadership overhaul. New CEO Roger Lynch has replaced Ynon Kreiz to lead an IP-forward strategy for core brands including Barbie and Hot Wheels. To support this transition, the company appointed Peter Griffith as finance chief and Steve Totzke as chief operating officer, with Totzke's role becoming effective November 11.
The company is facing increased pressure from shareholders, specifically Ariel Investments and Southeastern Asset Management. These investors have urged the toy manufacturer to explore strategic alternatives, including the possibility of a sale.
