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Mattel's Holiday Slump Sparks Stock Plunge
11 Feb
Summary
- Mattel shares dropped significantly after missing holiday sales estimates.
- The toy company's 2026 profit forecast also fell below expectations.
- Mattel acquired NetEase's stake in a mobile gaming joint venture.
Mattel Inc. experienced a significant stock decline in extended trading after reporting holiday quarter results that failed to meet analyst expectations. The company's shares dropped sharply as it also issued a 2026 forecast indicating lower anticipated profits.
Fourth-quarter earnings per share, excluding certain items, were reported at 39 cents, a figure below the 54-cent average estimated by analysts. Although sales increased to $1.77 billion, this also fell short of the projected $1.84 billion, with a notable shortfall in US December sales contributing to the miss.
In a strategic move to boost its mobile-gaming presence, Mattel announced its intention to acquire its partner NetEase Inc.'s stake in their joint venture for $159 million. This acquisition is expected to accelerate the development and release of mobile games based on Mattel's intellectual property.
Looking ahead to 2026, Mattel projects sales growth of 3% to 6%. However, earnings per share, excluding certain items, are expected to be between $1.18 and $1.30, a decrease from the $1.41 reported for 2025. The company also revealed a new licensing deal with Paramount Skydance Corp. for Teenage Mutant Ninja Turtles merchandise.
