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7h ago

Mattel Withdraws Financial Forecasts, Increases Prices Amid U.S.-China Tariff Strain

The toy giant raises its cost-savings target, accelerates production shifts out of China, and backs industry lobbying for zero toy tariffs as trade tensions escalate.

Barbie toy products, made by Mattel, for sale at a store in New York City on April 10.
The new and old versions of the classic Barbie dolls are on display at Mattel Design Center in El Segundo, California, U.S., February 22, 2024. REUTERS/Mario Anzuoni/File Photo
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Overview

  • Mattel has suspended its 2025 financial guidance, citing uncertainty caused by evolving U.S.-China tariffs and disrupted supply chains.
  • The company will raise prices on select U.S. products to counter higher input costs driven by over-100% cumulative tariffs on Chinese imports.
  • Mattel increased its annual cost-savings target to $80 million, up from $60 million, and plans to reduce promotions and discounts to offset expenses.
  • About 40% of Mattel's toys are still manufactured in China, but the company is accelerating efforts to diversify production to other countries like Indonesia and Malaysia.
  • Despite the challenges, Mattel reported stronger-than-expected Q1 results with $827 million in net sales and a reduced loss per share of 3 cents, beating analyst estimates.