Barbie maker Mattel plunges as cautious shoppers, lack of digital games weigh on forecast

February 18, 2026 – 2:07 PM

The new and old versions of the classic Barbie dolls are on display at Mattel Design Center in El Segundo, California, U.S., February 22, 2024. (Reuters/Mario Anzuoni/File Photo)

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Mattel

MAT.O

Traditional toymakers’ margins have also come under pressure from import tariffs and rising production costs, and Mattel said it faced fluctuating retailer ordering patterns for much of last year due to trade uncertainties. As well, Mattel said it expects Barbie doll sales to return to growth only in 2027.

The Uno maker’s cautious tone echoed that of rival Hasbro

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, which projected muted annual revenue growth earlier in the day.

“The results highlight how volatile demand and last-minute retailer ordering forced brands into deeper discounts.”

The company’s gross margin dropped nearly 5 percentage points to 45.9% in the December quarter.

Will digital investments pay off?

There were, however, pockets of strength for Mattel. Toy cars remained a standout, with Hot Wheels posting double-digit growth and solid performances from Matchbox and Disney and Pixar’s Cars lines during the December quarter.

“The big question now is whether Mattel’s increased investments can reignite demand, or simply extend the pressure in a highly value-conscious U.S. market,” Stambor said.

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to develop and market Teenage Mutant Ninja Turtles products starting in 2027.

—Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila, Sayantani Ghosh and Subhranshu Sahu