Mattel lowered its full-year financial forecast ahead of the holiday season.^[1] It now expects sales growth of 1% to 4% for 2026, at constant currency.^[2] The cut came with a quarter that looked healthy on its face. The reason is in what happened at the end of it. The quarter Third-quarter net sales were $1.8 billion, up 4% from a year earlier.^[3] Net income rose 27% to nearly $354 million.^[4] Consumer demand weakened late in the quarter and slowed into the fourth.^[5] The fourth quarter holds the holidays. The margin A tariff refund of $88 million lifted the adjusted gross margin to 55%.^[6] That is a one-off payment, not a sale. Two brands, two directions Barbie's performance is below the company's expectations.^[7] Hot Wheels is on track for its ninth consecutive record year.^[8] It is approaching $2 billion in gross billings.^[9] New management It was Roger Lynch's first earnings call as chairman and chief executive.^[10] Steve Totzke was appointed president and chief operating officer.^[11] Roberto Stanichi left the company to join Netflix.^[12] What comes next Mattel has repurchased $308 million of its shares so far this year.^[13] It will release guidance for 2027 in February.^[14]