Mattel, the manufacturer of Barbie dolls and Uno card games, has announced a suspension of its financial guidance for 2025 and indicated potential price increases for US consumers as it adjusts to new tariff-related costs.
The California-based company cited a “volatile macroeconomic environment and evolving US tariff situation” as key reasons for its decision to pause future sales and spending forecasts. These changes come as the US toy industry faces significant challenges from tariffs imposed on Chinese imports, which have reached rates of up to 145 percent.
In response, Mattel stated it is expediting efforts to diversify its manufacturing base beyond China, adjusting its product sourcing and mix, and considering selective price increases for US customers. “We are accelerating plans to reduce China-sourced product in the US as part of our response to tariffs,” said Ynon Kreiz, Mattel’s chief executive. He emphasized that pricing adjustments would be considered after other supply chain changes.
Kreiz did not comment directly on remarks made by US President Donald Trump, who suggested last week that higher toy prices might lead consumers to purchase fewer dolls. However, Kreiz reiterated Mattel’s commitment to providing a wide range of affordable, high-quality products for children and families worldwide.
China currently accounts for 80 percent of toys sold in the United States, according to the Toy Association. Industry concerns about tariffs have included warnings of potential price increases and product shortages. Hasbro, another major toy manufacturer, recently disclosed that tariffs could raise its costs by as much as $300 million this year, equivalent to roughly 20 percent of its annual cost of goods.
Mattel reported that less than 40 percent of its production is currently based in China. The company expects to consolidate to a single factory in China by the end of 2025, down from four a few years ago. Kreiz said these steps are intended to strengthen Mattel’s competitive position amid changing trade policies.
Earlier projections for 2 to 3 percent net sales growth this year had factored in some previously announced tariffs, but not the additional duties introduced in April. Despite these challenges, Mattel reported a 2 percent increase in net revenue for the first quarter, reaching $827 million, surpassing analyst expectations. The company reported a net loss of $40 million, which was slightly greater than forecasts and wider than the $28 million loss recorded during the same period last year. Rising selling and administrative expenses contributed to the quarterly loss, a seasonal occurrence for the company, which remains profitable on an annual basis.
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