Mattel Inc. Barbie model dolls on the market within the Toys “R” Us part of the Macy’s flagship retailer on Black Friday in New York, US, on Friday, Nov. 25, 2022.
Jeenah Moon | Bloomberg | Getty Pictures
Barbie-parent Mattel withdrew its annual monetary targets on Monday and mentioned it could improve costs for some merchandise within the U.S. to counter greater enter prices because of the Trump administration’s sweeping tariffs on key buying and selling companions.
Shares of the toymaker had been down about 2% in prolonged buying and selling. They’ve fallen about 8% to date this 12 months.
“Given the risky macroeconomic setting and evolving U.S. tariff panorama, it’s tough to foretell client spending and Mattel’s U.S. gross sales within the the rest of the 12 months and vacation season,” the toymaker mentioned.
In tit-for-tat tariffs between the U.S. and China, the world’s two largest economies have hiked levies on one another’s items to greater than 100% since President Donald Trump took workplace earlier this 12 months, escalating a commerce battle that has disrupted international provide chains.
“There isn’t any query that the tariffs are creating disruption within the business. Many firms have stopped manufacturing and delivery to the U.S. because of tariffs from China. We do help the Toy Affiliation’s advocacy for zero tariffs on toys,” Mattel CEO Ynon Kreiz informed Reuters in an interview.
The U.S. represents about half of Mattel’s international toy gross sales, and the corporate imports about 20% of its items offered within the nation from China.
The corporate mentioned it could additionally reduce promotions and reductions to avoid wasting prices. It elevated its costs-savings goal for the 12 months to $80 million from $60 million.
Other than China, Mattel imports merchandise equivalent to Barbie dolls and Scorching Wheels toys from Indonesia, Malaysia and Thailand, which had been additionally hit by reciprocal tariffs from the Trump administration in early April earlier than being paused for 90 days.
The corporate had earlier focused 2025 adjusted earnings per share between $1.66 and $1.72 and annual internet gross sales development of two% to three%.
In distinction, peer Hasbro, which sources about half of its toys and video games offered within the U.S. from China, maintained its annual forecasts in April, helped by energy in its gaming phase.
Mattel reported first-quarter internet gross sales of $827 million, beating analysts’ common estimate of $786 million, in response to knowledge compiled by LSEG.
It reported an adjusted loss per share of three cents, in contrast with the estimate of a 10-cent loss.
Mattel purchased again shares value $160 million within the quarter ended March 31 and maintained its $600 million repurchase goal for 2025.
