Mattel Holiday Sales Disappoint, Issues Weak Forecast

Toy maker's anticipated seasonal surge failed to materialize, leading to discounts that hurt margins.

Published on Feb. 10, 2026

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Mattel, the company behind popular toy brands like Barbie and Hot Wheels, reported disappointing sales and profits in the crucial fourth quarter as its anticipated holiday sales surge never materialized. The company was forced to increase discounts ahead of Christmas, which significantly impacted its profit margins.

Why it matters

Mattel's holiday performance is a closely watched indicator of the overall health of the toy industry. The company's struggles during the peak shopping season raise concerns about broader consumer spending and demand for toys.

The details

Mattel said its anticipated sales surge in the weeks leading up to Christmas did not materialize as expected. This prompted the company to step up discounts ahead of the holidays in an effort to drive sales, but that move ended up cratering its profit margins.

  • Mattel reported its fourth-quarter results on February 10, 2026.

The players

Mattel

A major American toy manufacturing company known for brands like Barbie, Hot Wheels, and Fisher-Price.

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The takeaway

Mattel's holiday sales struggles highlight the challenges facing the toy industry, as consumer spending remains uncertain. The company's need to resort to heavy discounting to drive sales during the peak season raises concerns about the overall health of the toy market.