Mattel Surpasses Expectations with Strong 10% Net Sales Growth in Q2 2026
Mattel, Inc. has reported a strong second quarter 2026, surpassing expectations with a 10% net sales growth as reported and 9% in constant currency. The company's Chairman and Chief Executive Officer, Ynon Kreiz, highlighted the success of Mattel's strategy to grow its IP-driven play and family entertainment business across toys, digital, and film.
With a double-digit increase in North America, Mattel achieved significant growth driven by both owned and partner IP and digital games following the full acquisition of Mattel163. The company maintained its position as number 1 globally in its three categories - dolls, vehicles, Infant, Toddler, and Preschool - and gained share in vehicles and action figures versus Kana.
During the earnings call, Ynon Kreiz emphasized that the company continues to execute its capital allocation priorities, including investing in organic growth and buying back shares. The investments in organic growth are designed to accelerate top and bottom line and capture more value from IP faster, with self-published mobile games, building sets, trading cards, D2C, first-party data, and technology and infrastructure being some of the key areas of focus.
The company's Chief Financial Officer, Paul Ruh, mentioned that these investments are progressing well and expect to have high ROI with a net positive contribution to the bottom line in 2027 and beyond. Top-line growth has continued in the third quarter to date with positive POS year-to-date, indicating a strong performance.
Ynon Kreiz also discussed the global toy industry's strong growth in the first half of the year, expecting it to grow for the full-year with a toyetic theatrical slate and continued expansion of adult consumers. The company's diverse portfolio and complementary combination of owned and partner brands have been a key factor in its success.
With its solid Q2 performance, Mattel reaffirms its guidance for the full-year 2026. As the company continues to execute its strategy, investors are optimistic about its future prospects. The company's strong balance sheet, capital allocation priorities, and commitment to investing in organic growth have positioned it well for success.
The acquisition of Mattel163 has provided a significant boost to the company's digital games business, further expanding its reach and capabilities. With its diverse portfolio and ability to capitalize on emerging trends, Mattel is well-positioned to capture more value from its IP and drive growth in the future.
