Mattel to Increase Prices Amid Tariff Challenges

On Monday, Mattel Inc., known for its popular Barbie dolls and Hot Wheels cars, announced plans to raise prices on some products in the U.S. This move aims to counteract rising costs linked to tariffs imposed by President Trump.

Despite efforts to shift its manufacturing away from China, the El Segundo, California-based company feels it has no choice but to adjust pricing. The tariffs on Chinese goods have reached as high as 145%.

Additionally, Mattel has withdrawn its annual revenue projections due to ongoing uncertainties surrounding trade policies. As a result, predicting consumer spending and overall sales for the remainder of the year has become quite complicated.

Interestingly, while the company reported an increase in first-quarter sales, there were also notable losses. Sales rose 2% to $827 million for the quarter that ended on March 31. However, losses expanded to $40.3 million, translating to 12 cents per share—up from a loss of $28.3 million, or 8 cents per share, during the same timeframe last year.

Analysts had anticipated a loss of 10 cents per share on sales around $786.1 million for the quarter, according to FactSet.

Following these announcements, Mattel’s shares dipped nearly 3% in after-hours trading.