Hot Wheels Sales Rise as Barbie Declines in Mattel’s Third Quarter 2026 Results
Hot Wheels continued to be a bright spot for Mattel during the third quarter of 2026, while Barbie sales declined and new licensed properties including KPop Demon Hunters helped drive growth elsewhere in the company’s toy portfolio. Mattel reported third-quarter net sales of $1.807 billion, up 4% from the same period last year and 3% on a constant-currency basis. North American net sales increased 4%, while international sales rose 5% as reported and 3% in constant currency.
Some of the most notable numbers came from Mattel’s individual product categories and its biggest brands. Hot Wheels generated worldwide gross billings of $585.5 million during the quarter, up 7% from $547.2 million a year earlier. On a constant-currency basis, Hot Wheels increased 6%. Through the first nine months of 2026, Hot Wheels gross billings reached approximately $1.309 billion, up 12% from $1.173 billion during the same period in 2025. The broader Vehicles category, which includes Hot Wheels, recorded $679.8 million in worldwide gross billings for the quarter. That represented a 9% increase as reported and 7% in constant currency, with Mattel identifying Hot Wheels as the primary driver of the category’s growth.
Barbie moved in the opposite direction. Worldwide Barbie gross billings totaled $374.6 million for the quarter, down 9% from $413.9 million in the third quarter of 2025 and down 10% on a constant-currency basis. For the first nine months of the year, Barbie gross billings were $689.8 million, down 13% from $788.3 million a year earlier. Despite the Barbie decline, Mattel’s overall Dolls category increased during the quarter. Worldwide gross billings for Dolls reached $703.2 million, up 4% both as reported and in constant currency. Mattel said the increase was primarily driven by partner brands, including the addition of KPop Demon Hunters, which helped offset the decline in Barbie.
Another growing area was Mattel’s Action Figures, Building Sets, Games and Other category. Worldwide gross billings increased 12% to $450.8 million during the third quarter, or 11% in constant currency. Mattel attributed the increase primarily to growth in Games, including the contribution from Mattel163, and Action Figures. That category has grown even faster over the first nine months of 2026, with gross billings reaching approximately $1.041 billion compared with $861.2 million during the same period last year, an increase of 21%.
Fisher-Price continued to face challenges. Worldwide Fisher-Price gross billings fell 14% during the quarter to $186.2 million from $215.4 million. Mattel’s overall Infant, Toddler and Preschool category declined 16% to $220.8 million.
Across all categories, Mattel recorded worldwide gross billings of approximately $2.055 billion during the third quarter, up 4% from $1.967 billion a year earlier. Mattel also reported substantially higher profitability for the quarter. Gross margin increased to 54.8% from 50% a year ago, while adjusted gross margin reached 55%. Mattel said the improvement was primarily driven by $88 million in tariff refunds received during the quarter. Operating income climbed by $96 million to $476 million, while adjusted operating income increased by $106 million to $502 million. Net income reached $354 million, an increase of $75 million from the prior-year quarter. Diluted earnings per share increased to $1.23 from 88 cents.
The results are among the first reported under Roger Lynch, who became Mattel’s Chairman and Chief Executive Officer in September. Lynch said his first weeks leading the company reinforced his belief in Mattel’s potential while also making clear where the business needs to improve. Lynch said Mattel will focus its resources on its greatest opportunities, with priorities that include strengthening its brands, winning in toys, driving innovation and creativity and investing with discipline to produce profitable growth. Mattel also announced Steve Totzke as President and Chief Operating Officer as part of the company’s leadership changes.
For the full 2026 fiscal year, Mattel now expects net sales growth of between 1% and 4% on a constant-currency basis. The company forecasts adjusted gross margin of approximately 48%, adjusted operating income between $500 million and $570 million and adjusted earnings per share between $1.05 and $1.20.
Mattel said that guidance excludes the benefits from tariff refunds already recognized during 2026 as well as any additional tariff refunds that could be recognized during the remainder of the year.
From a collectibles perspective, the quarter shows considerably different trajectories across Mattel’s portfolio. Hot Wheels maintained its growth and surpassed $1.3 billion in gross billings through the first nine months of the year, while Barbie declined by double digits over the same period. At the same time, licensed partner brands such as KPop Demon Hunters and growth in action figures helped other parts of Mattel’s business gain ground.