Q1 2026 Mattel Inc Earnings Call Transcript
Key Points
- Mattel Inc (MAT) reported a 4% increase in net sales as reported and 1% in constant currency, exceeding expectations.
- The company saw strong growth in key brands such as Hot Wheels, UNO, and Monster High, with several brands achieving double-digit growth.
- Mattel Inc (MAT) successfully acquired full ownership of Mattel163 Mobile Game Studio, enhancing its digital strategy and capabilities.
- The company repurchased $200 million of shares in the quarter, maintaining a strong balance sheet and demonstrating commitment to shareholder returns.
- Mattel Inc (MAT) is making strategic investments totaling approximately $150 million in 2026 to drive accelerated growth and profitability, with expected high ROI in 2027 and beyond.
- Adjusted gross margin declined by 450 basis points to 45.1%, primarily due to tariffs, unfavorable foreign exchange, and inflation.
- Adjusted earnings per share declined by $0.18 to a loss of $0.20, reflecting higher advertising expenses and lower adjusted gross profit.
- Infant, Toddler, and Preschool categories declined 18%, primarily due to Fisher-Price, impacting overall performance.
- North America sales declined 4%, influenced by shifts in US retailer ordering patterns.
- Free cash flow generation decreased to $335 million from $582 million in the prior-year period, primarily due to lower net income.
Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mattel, Inc. first-quarter 2026 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Jen Kettnich, Vice President and Head of Investor Relations for Mattel.
Jen, please go ahead.
Thank you, operator, and good afternoon, everyone. Joining me today are Ynon Kreiz, Mattel's Chairman and Chief Executive Officer; and Paul Ruh, Mattel's Chief Financial Officer.
This afternoon, we reported Mattel's first-quarter 2026 financial results. We will begin today's call with Ynon and Paul providing commentary on our results, after which, we will provide some time for questions. (Operator Instructions)
Today's discussion, earnings release and slide presentation may reference certain non-GAAP financial measures and key performance indicators, which are defined in the slide presentation
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