Mattel plans to raise prices on some toys to offset tariff costs

FILE - Barbie Dream Besties from Mattel are displayed at the TTPM Holiday Showcase event in New York Sept AP Photo Richard Drew File AP Richard Drew FILE - Barbie Dream Besties from Mattel are displayed at the TTPM Holiday Showcase event in New York Sept AP Photo Richard Drew File AP Richard Drew NEW YORK AP Mattel Inc the maker of Barbie dolls Hot Wheels cars and other popular toys noted Monday that it would have to raise prices for selected products sold in the U S where necessary to offset higher costs related to President Donald Trump s tariffs The El Segundo California-based company disclosed the increases are necessary even though it is speeding up its plans to diversify its manufacturing base away from China Trump imposed a tariff on preponderance Chinese-made products Company executives informed analysts on a conference call that China as of now accounts for of Mattel s global production The company plans to move roughly products this year from manufacturers in China to sources in other countries compared to products last year For chosen highly sought after toys Mattel declared it would enlist factories in more than one country To prevent practicable shortages the company commented it was focusing on getting products to stores without interruptions The company declared that even with price increases it expects to of its toys will cost customers or less The diversified and flexible supply chain in global commercial organizations are clear advantages to Mattel in this period of uncertainty CEO and Chairman Ynon Kreiz reported analysts Citing the ongoing uncertainty surrounding the president s arrangement policies however Mattel withdrew its annual earnings forecast on Monday The company mentioned it would be laborious to predict consumer spending and the company s U S sales for the remainder of the year without more information Mattel disclosed larger-than expected first-quarter sales but also a wider loss Mattel disclosed sales rose to million for the quarter that ended March The company s loss expanded to million or cents per share in the quarter That compares with a loss of million or cents per share in the year-ago period Analysts expected a loss of cents on sales of million for the first quarter according to FactSet Mattel s shares were down less than in after markets trading Source