Mattel Misses Second Quarter Profit Expectations

Mattel Inc. reported second-quarter financial results on August 4, 2026, missing Wall Street profit expectations with an adjusted profit of 1 cent per share against analyst estimates of 4 cents per share. Net sales reached $1.12 billion, slightly exceeding the projected $1.10 billion, although advertising and promotion expenses rose by 11%.

The company attributed the profit shortfall to a slowdown in the traditional toy market and reduced discretionary spending from consumers facing economic uncertainty and higher living costs. The results follow a period of mixed market sentiment; Goldman Sachs had recently downgraded the stock to sell, citing execution risks and muted performance around recent content releases, such as the June 5 release of the live-action "Masters of the Universe" film.

Despite the quarterly miss, Mattel maintained its annual forecasts, projecting net sales growth between 3% and 6% and an adjusted profit per share between $1.27 and $1.39. Investors continue to monitor the company's entertainment-led growth strategy and its expansion into collectibles, trading cards, and video games.