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Mattel Inc., the maker of Barbie dolls, Hot Wheels cars and other popular toys, said Monday that it would have to raise prices for some products sold in the US “where necessary” to offset higher costs related to President Trump’s tariffs.
The El Segundo, California-based company said the increases are necessary even though it is speeding up its plans to diversify its manufacturing base away from China. Trump imposed a 145% tariff on most Chinese-made products.
Mattel also withdrew its annual earnings forecast, citing the ongoing uncertainty surrounding the president’s trade policies. The company said it would be “difficult to predict” consumer spending and the company’s US sales for the remainder of the year without more information.
The company reported larger-than expected first-quarter sales but also a wider loss. Mattel said sales rose 2% to $827 million for the quarter that ended March 31.
The company’s loss expanded to $40.3 million, or 12 cents per share, in the quarter. That compares with a loss of $28.3 million, or 8 cents per share, in the year-ago period.
Analysts expected a loss of 10 cents on sales of $786.1 million for the first quarter, according to FactSet.
Mattel’s shares were down nearly 3% in after markets trading.
