Mattel CEO aims to offset Trump's tariffs by shrinking manufacturing, making more movies

Core Insights - The company is transitioning from a traditional toy manufacturer to an intellectual property (IP) company, focusing on licensing its popular brands like Barbie, Hot Wheels, and Uno [1] - The success of the 2023 Barbie movie has led to a surge in Barbie-inspired products from over 15 other companies, contributing to a mini pink revolution [2] - The company is reducing its manufacturing footprint by closing or consolidating five factories, aiming to decrease reliance on China, which currently accounts for about 40% of its production [4][6] Manufacturing Strategy - The company has closed or consolidated five factories, with plans to further reduce reliance on China due to a 20% tariff threat on goods made there [4][6] - The CFO stated that no single country should account for more than 25% of production, although no specific timeline was provided for these goals [7] - The company currently manufactures in seven countries, including Mexico, which faces a potential 25% tariff after April 2 [4] Licensing and Media Ventures - The CEO is betting on licensing deals linked to movies about the company's major brands, with two films currently in production: "Masters of the Universe" in London and "Matchbox" in Morocco [7] - The company has 14 other movies and TV products in development, indicating a strong focus on media as a revenue stream [7] - Last year, sales of Hot Wheels products surpassed those of Barbie-related merchandise, highlighting the brand's strength [8][9]