Mattel Cuts Outlook, Retains Top Executive to Help Steer Ship

By Connor Hart

Mattel cut its full-year outlook ahead of the all-important holiday season, after sales came up short during the recent quarter.

The maker of Barbie dolls and Hot Wheels cars also on Thursday said it would retain a top executive as a key lieutenant to assist new Chief Executive Roger Lynch improve parts of the toymaker that he inherited last month.

Steve Totzke, who in May stepped down as Mattel's president and chief commercial officer, is now returning as president and chief operating officer, effective Nov. 11.

Prior to his departure, Totzke was widely viewed as Mattel's second-in-command and a potential successor to former CEO Ynon Kreiz, who left the toy company last month for a top job at the entertainment company now known as Skydance. Totzke had been working with Mattel in an advisory role through the end of the year, and was providing counsel to Lynch and the company's board in recent weeks.

Totzke's return comes amid a broader executive switch-up. The company replaced its finance chief weeks after Kreiz decamped to become co-CEO of Skydance. Also on Thursday, Mattel said Roberto Stanichi, president and chief marketing and brand officer, will step down to assume the role of VP of consumer products and experiences at Netflix.

The executive changes came as Mattel's latest quarter, which provides a critical set up for the key holiday season, fell short of expectations, with strength in Hot Wheels offsetting continued declines in its other key brands, Barbie and Fisher-Price. The company has also been facing mounting criticism from activist investors, who have taken issue with its falling stock and say executives should explore a sale.

The company's third-quarter sales rose 4.1% to $1.81 billion, short of Wall Street estimates for $1.84 billion, according to FactSet.

The shortcoming prompted Mattel to cut its outlook for the year, now calling for net sales growth in the range of 1% to 4% in constant currency, down from a prior outlook of 3% to 6%.

The company also lowered its guidance for adjusted earnings to between $1.05 and $1.20 a share, from a previous forecast of $1.27 to $1.39 a share. Analysts were looking for $1.29 a share.

Mattel posted a profit of $353.6 million, or $1.23 a share, in the recent quarter, up from $278.4 million, or 88 cents a share, a year earlier. Stripping out one-time items, earnings were $1.30 a share. Analysts polled by FactSet expected adjusted earnings of 94 cents a share.

Among its main brands, Barbie reported a 9% decline in gross billings, which measure sales to retailers before adjustments, while Fisher-Price reported a 14% drop. The losses were offset by a 7% increase for Hot Wheels.

Write to Connor Hart at connor.hart@wsj.com

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November 05, 2026 16:35 ET (21:35 GMT)