Research Alert: Mattel Posts Mixed Fq1 With Strength In Its International Business
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MAT posted mixed Q1 2026 results with net sales increasing 4% Y/Y to $862M, $53M above estimates, driven by International strength (+15%) offsetting North America weakness (-3%). Gross margin compressed 450 bps Y/Y to 44.9% due to tariff costs, unfavorable FX, and inflation, while adjusted EPS deteriorated to a loss of $0.20 vs. a $0.02 loss in the prior year, in line with estimates. We believe the muted market reaction reflects challenging margins, though valuation remains attractive with shares trading under 12x guidance. Management raised full-year operating income guidance to $580M-$630M and adjusted EPS to $1.27-$1.39. Category performance was mixed with Vehicles (+17%) and Action Figures (+21%) showing strength while Dolls declined 8% and Infant, Toddler, and Preschool fell 16%. Hot Wheels grew 17% while Barbie declined 16%. MAT completed the Mattel163 acquisition and repurchased $200M in shares. We believe the raised guidance suggests management's confidence in back-half improvements.
