Mattel Inc., a manufacturer of Barbie dolls, Hot Wheels cars and other popular toys, said on Monday that President Donald Trump will have to raise the prices of some products sold in the U.S. ’ if ’ is needed to offset the rising costs associated with “'s tariffs.
El Segundo, a California-based company, said the increases were necessary despite accelerating plans to move its production base away from China’. Trump imposed a 145% tariff on most Chinese products.
Company executives in a conference call analysts China’in is currently Mattel’in's global production %He said he made up his 40’. The company plans to move around 500 products this year from manufacturers in China’ to sources in other countries, compared to 280 products last year.
For some highly sought-after toys, Mattel said it would apply to factories in multiple countries. The company said it is focused on delivering products to stores without interruption to prevent possible shortages.
Despite the price increases, the company %From 40 to ’sinin about 20 to customers $ He said he expects it to cost more (€17.60) or perhaps less than that amount.
Ynon Kreiz, CEO and Chairman of the Board of Directors of “, told analysts that the diversified and flexible supply chain in global commercial organizations are clear advantages for Mattel in this period of uncertainty.
Mattel takes back the appearance of guidance
However, citing ongoing uncertainty over the president's trade policies, Mattel retracted its annual earnings forecast on Monday. The company said it would be difficult to predict consumer spending and the company's U.S. sales for the rest of the year without further information.
Mattel reported higher-than-expected sales in the first quarter, but also reported a greater loss. Mattel reported sales in the quarter ending March 31, ’. %He said it increased by 2 to $827 million (€728.9 million).
The company's losses rose to $42.3 million (35.5 million euros) this quarter. This compares to a loss of $28.3 million (24.9 million euros) in the same quarter last year.
Mattel’in stock price, USAFollowing markets in ’ %It dropped by less than 1’.
