Mattel Stock Jumps as Toymaker Looks to Supply Chain, Prices to Limit Tariffs Threat

Core Insights - Mattel's shares rose over 12% in premarket trading following the announcement of plans to mitigate tariff threats and a positive sales forecast for 2025 [2][6] - The company expects 2025 net sales to grow by 2% to 3% compared to a 1.1% decline in 2024 sales, with adjusted EPS guidance between $1.66 and $1.72 [2][3] Tariff Mitigation Strategies - Mattel plans to leverage its supply chain and implement price increases to counteract the impact of new U.S. tariffs on imports from China, Mexico, and Canada [3][6] - UBS analysts noted that the guidance for EPS growth despite tariffs was unexpected, suggesting that Mattel may shift some production out of China and optimize its supply chain [4][6] Production and Sales Performance - The company sources toys from seven countries, with China expected to account for less than 40% of production this year, and no single country projected to exceed 25% of total global production by 2027 [5] - In the fourth quarter, Mattel reported a 2% year-over-year increase in net sales to $1.65 billion and adjusted EPS of 35 cents, surpassing consensus estimates [5]