Mattel Suspends Financial Forecast, Hints at Price Rise
(MENAFN) Iconic U.S. toymaker Mattel, the company behind the globally recognized Barbie dolls, announced on Monday its decision to suspend its financial forecast for the entire year. This move comes in direct response to the widespread increases in U.S. tariffs, prompting the possibility of price increases for some of its toys sold within the country.
During the company's first-quarter earnings call, Mattel Chairman and CEO Ynon Kreiz cited "the volatile macroeconomic environment and evolving U.S. tariff landscape" as factors creating significant uncertainty. He stated that these conditions make it "difficult to predict consumer spending and Mattel's U.S. sales in the remainder of the year and holiday season."
In an effort to counteract the escalating costs associated with the higher tariffs, the California-based corporation indicated that raising the prices of some toys has become "necessary."
Mattel executives further revealed that the company has joined forces with the broader toy industry in advocating for the elimination of tariffs on toys. However, they acknowledged the need to prepare for what they anticipate will be an extended period of elevated tariffs on goods manufactured in China and other nations. Currently, China accounts for a substantial 40 percent of Mattel's total global production.
"Toys are foundational to a child's growth and development," Kreiz emphasized. "Zero tariffs for toys give the greatest number of children and families access to play."
Concerns are mounting within the U.S. toy industry regarding the potential ramifications of Washington's high-tariff policies. According to data from the Toy Association, approximately 80 percent of all toys sold in the United States are imported from China.
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