Mattel's stock experienced a 24-hour plunge of 30.01% during extended trading on Tuesday, following the release of its fourth-quarter financial results and outlook for the current year.

The sharp decline was driven by the company reporting sales and profit that fell short of Wall Street expectations for the critical holiday quarter. Mattel's anticipated sales surge in the weeks leading up to Christmas did not materialize, prompting the toy maker to increase discounts which significantly pressured margins. Fourth-quarter adjusted earnings of $0.39 per share missed the consensus estimate of $0.54, while revenue of $1.77 billion came in below the expected $1.84 billion.

Furthermore, the company issued guidance for 2026 that was well below analyst estimates, forecasting adjusted earnings per share of $1.18 to $1.30 compared to the consensus expectation of $1.75. The weak outlook reflects ongoing challenges with consumer discretionary spending amid economic uncertainty, particularly in the U.S. market during the key holiday season. The results stood in contrast to rival Hasbro, which reported stronger performance, highlighting Mattel's relative weakness in the competitive toy market.