Trump's Tariffs Hit Mattel's Barbies: Will Americans Pay 'A Couple Of Bucks More' As President Predicts?

Core Insights - Mattel Inc. reported first-quarter revenue of $827 million, exceeding analyst estimates of$786 million, and a loss of 3 cents per share, better than the expected loss of 10 cents per share [1][2] Group 1: Financial Performance - The company achieved a strong quarter, with CEO Ynon Kreiz highlighting operational excellence and a resilient balance sheet [2] - Mattel has paused its full-year 2025 guidance due to a volatile macro-economic environment and changing U.S. tariff landscape [3] Group 2: Tariff Impact and Pricing Strategy - Mattel plans to raise prices to offset costs from tariffs, with a focus on diversifying its supply chain and improving product sourcing [2][3] - The company aims to keep many prices under $20 but will increase prices on several items to manage rising costs [6] Group 3: Manufacturing and Supply Chain - Mattel has been diversifying its global manufacturing for nearly a decade to reduce dependence on China, with plans for no single country to handle over 25% of sourcing by 2025 [6] - Currently, China accounts for approximately 540% of Mattel's sourcing, which is expected to change significantly in the next two years [6] Group 4: Market Context and Consumer Behavior - The toy industry, including companies like Mattel and Hasbro, faces challenges ahead of the Christmas shopping season, with concerns about consumer willingness to pay higher prices for toys [8][9] - Trump's comments about children needing fewer toys have sparked discussions about consumer behavior and spending during the holiday season [4][9]