Mattel Inc., the maker of Barbie dolls, Scorching Wheels automobiles and different widespread toys, mentioned Monday that it must increase costs for some merchandise offered within the US “where necessary” to offset larger prices associated to President Trump’s tariffs.
The El Segundo, California-based firm mentioned the will increase are crucial regardless that it’s dashing up its plans to diversify its manufacturing base away from China. Trump imposed a 145% tariff on most Chinese language-made merchandise.
Mattel additionally withdrew its annual earnings forecast, citing the continued uncertainty surrounding the president’s commerce insurance policies. The corporate mentioned it might be “difficult to predict” client spending and the corporate’s US gross sales for the rest of the 12 months with out extra info.
The corporate reported larger-than anticipated first-quarter gross sales but in addition a wider loss. Mattel mentioned gross sales rose 2% to $827 million for the quarter that ended March 31.
The corporate’s loss expanded to $40.3 million, or 12 cents per share, within the quarter. That compares with a lack of $28.3 million, or 8 cents per share, within the year-ago interval.
Analysts anticipated a lack of 10 cents on gross sales of $786.1 million for the primary quarter, in line with FactSet.
Mattel’s shares have been down practically 3% in after markets buying and selling.
