Mattel lowered its full-year 2026 sales and adjusted-profit forecasts on Thursday, as the toy maker faces soft demand ahead of the holiday shopping season. The announcement comes as new chief executive Roger Lynch takes charge of the company.

The company now expects sales growth of 1% to 4% for the year, down from its previous outlook of 3% to 6%. Mattel also reduced its forecast for adjusted earnings to between $1.05 and $1.20 per share, compared with its earlier range of $1.27 to $1.39, according to Reuters and The Wall Street Journal.

The revised outlook raises the pressure on Mattel to improve performance during the key year-end period. Toy companies depend heavily on holiday demand, while consumers are balancing discretionary purchases against ongoing household costs.

Mattel has been working to extend its brands through entertainment, licensing and consumer products as it navigates uneven demand. The forecast cut gives investors a lower near-term target to assess as the company enters its busiest selling season.

Sources: Reuters; The Wall Street Journal.