Mattel reported higher second-quarter sales, though the company swung to a loss as higher expenses weighed on margins.

The toymaker on Tuesday posted a loss of $18.2 million, or 6 cents a share, compared with a profit of $53.4 million, or 16 cents a share, a year earlier.

Stripping out certain one-time costs, earnings came in at 1 cent a share. Analysts polled by FactSet expected adjusted earnings of 4 cents a share.

The company attributed the decline in earnings to higher advertising costs and selling, general and administrative expenses. The costs pressured margins but were partially offset by an increase in sales.

Net sales climbed 10%, to $1.13 billion, just ahead of the $1.1 billion that Wall Street modeled. Sales increased 12% in North America and roughly 9% across international markets, the company said.

"Growth has continued in the third quarter, and we expect to achieve our full-year 2026 guidance," Chief Executive Ynon Kreiz said.

Mattel reported growth across categories including vehicles, which notched a 14% gain in gross billings--a measure of sales to retailers before adjustments. Gross billings for action figures, building sets and games jumped 35%, largely driven by the theatrical release of "Masters of the Universe" during the recent quarter.

The gains were partially offset by the company's dolls and infant, toddler and preschool categories, where gross billings fell 5% and 11%, respectively, primarily due to declines in Barbie and Fisher-Price.

Looking ahead, Mattel backed its outlook for sales to climb 3% to 6% this year. The company continues to expect adjusted earnings of $1.27 to $1.39 a share, compared with analyst views for $1.32 a share.