Mattel's shares skyrocketed more than 15% after Toy Giant said it was weighing the price rise of Barbie and other iconic brands due to Trump's tariffs on Chinese products.
El Segundo, California-based company – Hot Wheels, Fisher Price and American Girl, but also produces the majority of Chinese toys and is currently subject to 10% tariffs. We also opened a factory in Mexico. This could result in 25% tariffs, which could take effect on March 1st. It has completely factory in seven countries.
Despite this, Mattel said it expects sales to rise by 3% this year despite an overall slowdown in toy sales last year. Circana. Adjusted revenue for the fourth quarter was 35 cents per share, compared to Wall Street's forecast share of 20 cents.
A bright forecast states that “exploiting the expected impact of new US tariffs on Chinese, Mexico and Canada's imports announced on February 1, as well as the strength of the supply chain and potential pricing. This includes mitigating actions that we plan to take, including the statement. .
Mattel shares closed 15% on Wednesday at $20.84.
“Prices are relatively easy to implement in the toy industry,” said Linda Bolton Weiser, analyst at DA Davidson, to Da Davidson analyst Linda Bolton Weiser. “Kids want what they want regardless of price. I'm here.
Analysts added that Mattel is hoping “to make concessions from suppliers as well, and they are so big that they have a lot of power to negotiate.”
Mattel said earnings per share will be between $1.66 and $1.72 per share compared to $1.62 in 2024.
“Matel's easing efforts seem to include a combination of shift production from China, pricing and supply chain optimization,” said the investment bank, which raised Mattel's shares from $29 to $29. According to UBS research notes.
Still, “prices are bad for the toy business,” James Zahn, editor of Toy Insider, told the Post.
“The margins are already thinning, and retailers are feeding the toy makers the majority,” Zahn said. “At the end of the day, prices go up. There's no way to avoid that. And if Mexico is targeted again, they already rely on Mexico for some production, so Mattel It directly affects the
President Trump suspended his 25% obligation on imports from Mexico and Canada, but a 10% tariff on goods from China has been enforced.
Around 80% of all toys are made in China, and the toy industry still hopes to unlock toy exemptions, as the Trump administration did earlier in his first term of office.
Meanwhile, it's not clear when Mattel will raise prices or prices, but it doesn't help the barbie sales drooping.
The signing doll has grown in recent years with the leaps and boundaries that have been partially promoted by Barbie films in 2023, but sales last year began to slow down.
During the key holiday season, Mattel sales rose 1% in the US fourth quarter, backed by action figures and hot wheels.
Total billings for dolls around the world have fallen by 8%. This is largely due to Barbie's decline, the company said Tuesday.
