Mattel Inc. (MAT) sees the toy industry growing at a double-digit pace year-to-date, driven by games, trading cards, action figures, vehicles, and building sets, according to data from Circana tracking 17 general merchandise retail categories.
Speaking at a Goldman Sachs conference on Tuesday, September 15, 2026, CEO Ynon Kreiz and CFO Paul Ruh detailed the company's strategy as it pursues a full-year 2026 gross margin target of approximately 50%, up from 47.6% over the trailing twelve months.
Hot Wheels, Mattel's largest brand since 2024, is on track to top $2 billion in sales for a ninth consecutive year of growth. Price points range from $1.49 for basic cars to $700 for collector sets, Kreiz told analysts led by Goldman Sachs' Stephen Laszczyk.
The company is shifting advertising and business models away from item-by-item sales toward a holistic "brand-centric" approach — what Kreiz called the "Mattel flywheel" — aiming to build fandom and lifestyle engagement around its properties. Hot Wheels is being repositioned beyond toys into car culture and lifestyle.
New product initiatives are showing early promise. The Mattel Brick Shop line of high-quality, vehicle-accurate building sets has been described as a runaway hit. Mattel is also entering trading cards as a low-investment entry into collectability trends, leveraging UNO — currently the number one game in the market — and expanding its presence in hobby and specialty retail channels.
On digital, the launch of a mobile game has been delayed to early 2027 to better align with user acquisition efforts and optimize returns.
Financially, Mattel repurchased roughly $1.5 billion of stock since resuming buybacks in 2023, representing about 23% of its float. The company is targeting $400 million in share repurchases for 2026. Return on equity stands at 20% over the last twelve months, and the stock trades at a P/E ratio of 10.08, having closed at $14.01 on September 11 after gaining $0.20, or 1.45%.
Management reported receiving approximately $90 million in IEEPA tariff refunds so far. Last year's fourth quarter included about 500 basis points of elevated promotional spend that Kreiz said would not recur.
Strategic investments for 2026 total $110 million, with roughly $150 million of planned spending shifted into 2027. Retail inventory levels at both store and corporate levels are considered stabilized, moving past disruptions last year when ordering patterns shifted from direct import to domestic shipping.
Toys as a category have grown in 23 of the past 25 years, Kreiz noted, underscoring the sector's resilience even as Mattel bets its growth narrative on brand extension rather than volume alone.
