Mattel Inc, Barbie doll manufacturer, Hot Wheels cars and other popular toys, said Monday that It would have to raise the prices of some products sold in the United States “When necessary” to compensate for the greatest costs related to the tariffs of President Donald Trump.
The company based in the second, California, said that The increases are necessary even though they are accelerating their plans to diversify its manufacturing base outside of China. Trump imposed a 145% tariff on most products made in China.
The company’s executives told analysts at a telephone conference that China currently represents 40% of Mattel’s global production. The company plans to transfer about 500 products this year from manufacturers in China to sources in other countries, in Comparison with 280 products last year.
For some very requested toys, Mattel said he would resort to factories from more than one country. To avoid possible shortagesThe company said it was focusing on getting the products to stores without interruptions.
The company saideven with price increases, expects between 40% and 50% of their toys to cost customers about $ 20 (17.60 euros) more, or maybe less. “The diversification and flexibility of the supply chain in global commercial organizations are clear advantages for Mattel in this period of uncertainty,” the CEO and president, Ynon Kreiz, told analysts.
Mattel withdraws his forecasts
However, referring to the current uncertainty about the president’s commercial policies, Mattel retired his annual benefits forecasts on Monday. The company said it would be “difficult to predict” consumer spending and company sales in USA for the rest of the year without more information.
Mattel reported some sales in the first quarter greater than expectedbut also of greater losses. Mattel declared that sales increased by 2%, to 827 million dollars (728.9 million euros), in the quarter that ended on March 31.
Company losses increased to 40.3 million dollars (35.5 million euros) In the quarter. This figure contrasts with the loss of 28.3 million dollars (24.9 million euros) of the corresponding quarter of last year. The price of Mattel’s shares fell less than 1% in the operations after markets in the US.
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