Mattel is considering raising the price of toys to alleviate the impact of tariffs
Federation Hermes CIO Stephen Och has the global economy with President Donald Trump’s economic agenda and the expected impact it will be.
Mattel is considering potentially increasing the prices of toys as part of an effort to ease President Donald Trump’s tariffs on imports from China, Mexico and Canada.
Last weekend, the president signed an executive order calling for 10% collection of imports from China; 25% tariff Imports from Mexico and Canada.
Tariffs on China came into effect on Tuesday. However, the Trump administration suspended collections of its Northern and Southern neighbors in the US after Canada and Mexico agreed to take steps to strengthen enforcement at the US border.
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leader At Mattel “Utilizing supply chain strength” on Tuesday said the possible pricing measures were one of the measures the toy companies were considering implementing to address tariffs.
Mattel is considering the possibility of raising toy prices as part of President Donald Trump’s efforts to ease tariffs on imports from China, Mexico and Canada. (Armando Arorizo/Bloomberg Via/Getty Images)
“Our team has been fully committed to analyzing and planning a variety of scenarios,” CFO Anthony Disilvestro told analysts and investors. “And based on what we know today, in terms of financial impact on Mattel, the 2025 guidance includes those that leverage supply chain strength and potential pricing. It includes the expected impact of the new tariffs.”
Mattel is known for Barbie, Hot Wheels, Fisher Price Other brands make toys in seven countries, he said, adding that toy companies have “continuously optimized and diversified their manufacturing footprint” in recent years.
Shoppers are looking at Mattel Barbie dolls for sale at Target stores in Chicago. (Christopher Dilt / via Bloomberg / Getty Images)
It is expected that less than 40% of Mattel’s global toy production will occur In China According to Disilvestro, this year it has a much lower share than the industry average of around 80%.
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“With the US representing about half of the world’s toy sales, the US tariff exposure associated with China should be about 20% of global production,” said CFO Mattel. “And with Mexico and Canada, we currently source less than 10% of our toys. From Mexico There is no source from Canada. ”
The toy company is planning to have a “single country” that will reach over 25% of production by 2027, Disilvestro added.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| mat | Mattel Inc. | 21.48 | +0.05 |
+0.23% |
Regarding tariff easing measures, Mattel said he “works closely” with retail partners because he “achieves the right balance and keeps consumers in mind whenever he considers pricing behavior.” .
Toy companies will adjust earnings per share in the range of $1.66 to $1.72 in net sales for fiscal year 2025, with a 2%-3% increase in financial year 2025, taking into account the potential impact from tariffs and the company’s response. It’s there.
Mattel’s Hot Wheels Cars are available for sale in our Chicago store on April 23, 2024. (Scott Olson/Getty Images)
According to CEO Ynon Kreiz, Mattel works with around 500,000 retailers to sell a variety of toy products. We also use e-commerce Avenue to sell toys.
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The company generated nearly $5.38 billion in net sales during 2024. Meanwhile, the annual net income was $541.8 million.
“Our priorities for 2025 are to expand our top and bottom lines. Meanwhile, we are increasing our investment in our digital gaming self-publishing business and capital allocation to invest in organic growth. It’s about pursuing long-term growth along priorities,” Kreis told analysts.