Mattel, the maker of Barbie dolls and other popular toys, said it will have to raise prices on some of its products sold in the United States to cover increased costs associated with tariffs imposed by President Donald Trump.
The California-based company said the price increases were necessary even as it accelerates its plans to expand its manufacturing base outside China. President Trump has imposed a 145% tariff on most goods coming from China.
On a conference call, company executives told analysts that China accounts for 40 percent of Mattel's global production.
This year, the company plans to transfer about 500 items from Chinese manufacturers to suppliers in other countries, up significantly from 280 items last year.
Mattel said it would use factories in multiple countries for some of its most popular toys. To avoid potential shortages, the company stressed that it was focused on ensuring that products could be delivered to stores without interruption.
The company said that even with the price increases, it expects 40-50% of its toys to be available to customers for $20 (£15) or less.
“Mattel's diversified and flexible supply chain across its global business organizations represents a distinct advantage in this time of uncertainty,” CEO and Chairman Ynon Kreitz told analysts.
Given the ongoing uncertainty surrounding the president's trade policies, Mattel on Monday pulled its full-year profit forecast.
The company said that without additional information it would be “difficult to predict” consumer spending and sales volume for the rest of the year in the U.S.
Mattel reported better-than-expected first-quarter sales but also a wider loss. The company's sales rose 2% to $827 million (£622 million) in the quarter ended March 31.
The company's loss widened to $40.3 million, or 12 cents per share, for the quarter, compared with a loss of $28.3 million (£21.3 million), or 8 cents per share, for the same period in 2024.
Analysts had expected a loss of 10 cents on sales of $786.1 million (£592 million) for the first quarter, according to FactSet.
Sourse: breakingnews.ie
