Renewed demand in the toy industry is expected to provide much-needed growth for Mattel this year, according to CEO Ynon Kreiz.

Kreiz, who spoke Tuesday at the Goldman Sachs Consumer and Retail Conference, said Mattel is "very confident about continued growth" and the firm anticipates achieving its guidance. Last month, Mattel forecast fiscal-year earnings in the range of $1.27 to $1.39 a share and between 3% and 6% revenue growth. Wall Street was expecting adjusted earnings of $1.59 a share and $5.98 billion in revenue.

Mattel stock has dropped 33% this year following a disappointing 2025 holiday season, during which the toy company fell short of the strong growth it had anticipated. Unexpectedly weak retail sales, rising consumer debt, and delinquency rates at the time suggested a broader pullback from lower-income households. Shares were down 0.7% Wednesday morning.

But Mattel shares are up 2% from their 52-week closing low of $13.05 set in July, and Kreiz said Tuesday that the toy industry is "growing strongly."

"Within this environment, we are also seeing growth and momentum in our business, in consumer demand, which is positive quarter-to-date," Kreiz said. The company signaled revenue momentum after reporting a 10% increase in second-quarter sales in August, driven by growth for Hot Wheels.

"Hot Wheels has been an incredible success story that is not slowing down," Kreiz said, projecting sales of the toy car brand will exceed $2 billion. "And we couldn't be more confident about the momentum and the fact that it will continue to grow for years to come," he said.

He noted that Mattel has seen growth not only in toy vehicles, but also in action figures and building sets, which Kreiz said are "becoming a key part of our portfolio."

The shifting retail order patterns that disrupted Mattel's business in 2025 have stabilized, potentially setting the toy maker up for a stronger fourth quarter this year, Kreiz said. Mattel will report fourth-quarter results in February 2027.