Mattel considers raising prices on toys to mitigate tariff impact

Core Insights - Mattel is considering increasing toy prices to offset the impact of tariffs imposed by President Trump on imports from China, Mexico, and Canada [1][3] - The company is actively analyzing various scenarios to mitigate the financial impact of these tariffs, with a focus on leveraging its supply chain [4][6] Tariff Impact and Company Strategy - The 10% tariff on imports from China has already taken effect, while tariffs on Mexico and Canada have been paused for one month [2] - Mattel's CFO indicated that the company's 2025 guidance includes the anticipated impact of the new tariffs and the planned mitigating actions [4] - Less than 40% of Mattel's global toy production is expected to occur in China this year, significantly lower than the industry average of approximately 80% [5] - The company's tariff exposure related to China is estimated to be about 20% of global production, with less than 10% sourced from Mexico and no sourcing from Canada [6] Production and Sales Forecast - Mattel aims to ensure that no single country accounts for more than 25% of its production by 2027 [6] - The company forecasts a 2%-3% growth in net sales for fiscal 2025, with adjusted earnings per share projected between $1.66 and$1.72 [7] - In 2024, Mattel generated nearly $5.38 billion in net sales and reported an annual net income of$541.8 million [9]