Barbie Dream Besties, from Mattel, are displayed on the TTPM 2024 Vacation Showcase occasion in New York. Barbie maker Mattel says it must increase costs of some merchandise bought in the US due to the tariffs. (AP Photograph/Richard Drew, File)
NEW YORK, United States — Mattel Inc., the maker of Barbie dolls, Sizzling Wheels automobiles and different in style toys, stated Monday that it must increase costs for some merchandise bought within the US “the place vital” to offset increased prices associated to President Donald Trump’s tariffs.
The El Segundo, California-based firm stated the will increase are vital though it was dashing up its plans to diversify its manufacturing base away from China. Trump imposed a 145-percent tariff on most Chinese language-made merchandise.
Firm executives informed analysts on a convention name that China presently accounts for 40 % of Mattel’s world manufacturing. The corporate plans to maneuver roughly 500 merchandise this 12 months from producers in China to sources in different international locations, in comparison with 280 merchandise final 12 months.
READ: Toys anticipated to price extra resulting from new US tariffs on Chinese language imports
For some extremely wanted toys, Mattel stated it might enlist factories in a couple of nation. To forestall potential shortages, the corporate stated it was specializing in getting merchandise to shops with out interruptions.
The corporate stated that even with value will increase it expects 40 % to 50 % of its toys will price prospects $20 or much less.
“The diversified and versatile provide chain in world industrial organizations are clear benefits to Mattel on this interval of uncertainty,” CEO and Chairman Ynon Kreiz informed analysts.
Citing the continued uncertainty surrounding the president’s commerce insurance policies, nevertheless, Mattel withdrew its annual earnings forecast on Monday. The corporate stated it might be “troublesome to foretell” shopper spending and the corporate’s US gross sales for the rest of the 12 months with out extra info.
Mattel reported larger-than anticipated first-quarter gross sales but in addition a wider loss. Mattel stated gross sales rose 2 % to $827 million for the quarter that ended March 31.
The corporate’s loss expanded to $40.3 million, or 12 cents per share, within the quarter. That compares with a lack of $28.3 million, or 8 cents per share, within the year-ago interval.
Analysts anticipated a lack of 10 cents on gross sales of $786.1 million for the primary quarter, in accordance with FactSet.
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Mattel’s shares have been down lower than 1 % in after markets buying and selling.
