Barbie’s manufacturer, Mattel, withdrew his annual financial objectives and said he would increase the prices of some products in the United States because the wide Trump administration tariffs increase supplies costs for the toy manufacturer.
“Given the volatile macroeconomic environment and the evolution of the US tariff landscape, it is difficult to predict the expenditure of Mattel consumers and sales in the United States during the rest of the year and the Christmas season,” he said.
The United States represents approximately half of Mattel’s global sales sales, and the company imports approximately 20% of the products it sells in the country from China. Mattel said he would reduce imports to the United States from China to less than 15% by 2026.
The United States and China have increased tariffs on the products of the other to more than 100% since President Donald Trump assumed office earlier this year, in a total commercial war between the two largest economies in the world that has disrupted global supply chains.
“There is no doubt that tariffs are generating disruption in the industry. Many companies have interrupted production and shipments to the United States due to China’s tariffs. We support the defense of the toys association for the elimination of tariffs for toys,” Mattel’s executive director, Ynon Kreiz, told Reuters.
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The company will also make changes in its supply chain to reduce Chinese products in the US. For example, the production of the one -one card game in India was increasing to serve the US market and was increasing the flow from China to international clients, Kreiz said.
In addition to China, Mattel imports products such as Barbie dolls and Hot Wheels of Indonesia, Malaysia and Thailand, which were also affected by reciprocal tariffs of the Trump administration in early April before being suspended for 90 days.
Mattel provides 270 million pesos for tariff costs
Mattel awaits around 270 million dollars in incremental costs per tariffs this year, starting in the quarter of July, but mitigation shares are expected to completely compensate for these costs, said the outgoing director, Anthony Dysilvestrus, in a call after earnings.
The company said it would also moderate promotions to save costs and increased cost savings objective for the year to 80 million dollars from 60 million.
“The toy manufacturer is sightd by Trump’s tariff war,” said Zak Stambor, Emarketer’s senior analyst.
Mattel had previously set in aimed at action by action by 2025 of between 1.6 and 1.72 dollars and an annual growth of net sales from 2% to 3%.
On the contrary, its Hasbro competitor, which obtains approximately half of its toys and games sold in the United States from China, maintained its annual forecasts in April, helped by the strength in its game segment.
However, Kreiz said the second quarter had a strong start with a growing demand.
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Mattel’s net sales in the first quarter, of 827 million dollars, exceeded the average estimate of analysts of 786 million dollars, according to data collected by LSE. It also recorded a loss adjusted by 3 cents action, less than estimated.
The company repurchased shares worth 160 million dollars during the quarter ending on March 31 and maintained its repurchase objective of 600 million dollars by 2025.
With Reuters information
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