Mattel's second quarter revenue of $1.13B beat estimates, but adjusted EPS of $0.01 missed expectations.

Mattel reported second quarter net sales of $1.13 billion, a 10% increase year-over-year, and an adjusted EPS of $0.01. The results were driven by strong growth in the Vehicles and Action Figures segments, though profitability declined due to lower gross margins and higher operating expenses. The company reaffirmed its full-year 2026 guidance.

Key Highlights

• Net Sales grew 10% to $1.13 billion, supported by a 12% increase in North America.
• Adjusted EPS fell to $0.01 from $0.21 in the prior-year quarter, missing analyst estimates.
• Adjusted Gross Margin was 48.6%, a decrease of 260 basis points year-over-year, which the company attributed to tariffs, inflation, higher royalties, and unfavorable foreign exchange.
• By category, Worldwide Gross Billings for Vehicles grew 14% and Action Figures, Building Sets, and Games rose 35%, while Dolls declined 5%.