Mattel Inc., the company behind iconic toys such as Barbie dolls and Hot Wheels cars, announced Monday that it plans to increase prices on some of its products sold in the United States. The move aims to counterbalance rising costs linked to recent tariffs imposed by President Donald Trump.
Based in El Segundo, California, Mattel stated that the price adjustments have become necessary despite ongoing efforts to diversify its manufacturing operations beyond China. Currently, approximately 40% of the company’s global products come from Chinese manufacturers, a reliance that has proven problematic following a significant 145% tariff applied by the Trump administration on a wide range of Chinese imports.
To mitigate these expenses, Mattel officials shared plans to transition about 500 products away from their current Chinese producers toward suppliers in other countries during the year, compared with approximately 280 products relocated last year. The company also disclosed intentions to rely on multiple factories across different countries for its most popular merchandise, a decision aimed at preventing potential inventory shortages and supply disruptions.
Despite these challenges, Mattel expressed confidence that a substantial share—between 40% and 50%—of its toy lineup will remain priced at $20 or less. Mattel CEO and Chairman Ynon Kreiz emphasized the advantages of the company’s adaptable global supply chain and flexible commercial strategies, underscoring how beneficial these assets are during current market uncertainties.
However, in response to ongoing trade policy unpredictability, Mattel has withdrawn its annual earnings guidance, citing difficulties in accurately forecasting future consumer spending patterns and U.S. sales performance without additional clarity on tariff developments.
For the most recent financial quarter ending March 31, Mattel reported a 2% rise in revenue to $827 million, surpassing analysts’ expectations of $786.1 million. Nevertheless, the company also recorded a widened quarterly loss of $40.3 million, equivalent to 12 cents per share, compared to a loss of $28.3 million, or 8 cents per share, in the same period the previous year. Analysts surveyed had anticipated a more modest loss of approximately 10 cents per share.
Following this announcement, Mattel’s stock price experienced a slight decline, decreasing by less than 1% in after-hours trading.
