Why Mattel Stock Crashed Today

Core Insights - Mattel's stock price dropped 25% after the company's fourth-quarter earnings failed to meet investor expectations [1] Financial Performance - Mattel's net sales increased by 7% year over year, reaching $1.8 billion, driven by growth in Hot Wheels and action figure categories [4] - The company's gross margin declined by 4.8 percentage points to 45.9%, primarily due to higher tariff-related costs and challenges in passing these costs onto consumers [5] - Net income decreased by $35 million to $106 million [5] - Adjusted earnings per share were $0.39, significantly below Wall Street's expectation of $0.55 [6] Future Outlook - Mattel anticipates sales growth of 3% to 6% in 2026, but management cautioned that adjusted earnings per share could decline by as much as 16% [7] - CEO Ynon Kreiz mentioned that strategic investments are being made that will impact the bottom line this year but are intended to foster growth in 2027 and beyond [7]