Mattel warns: Barbie could be more expensive
Mattel warns: Barbie could be more expensive
Last week President Donald Trump pointed out the Americans that his trade war could lead to children's dolls cost "a few more dollars". Apparently this is true.
Mattel increases prices due to tariffs
The CEO von Mattel, the toy giant and manufacturer of Barbie, announced in a conversation with the Wall Street Journal on Monday that the company will increase the prices for American toys due to tariffs.
volatility of the customs situation
"We are currently modeling different scenarios, but it is difficult to predict where things will end up and how the customs situation will develop," said Chief Executive Ynon Kreiz. "It is currently very volatile."
consequences of the trade war for American families
A long -lasting trade war could mean that in many places in the United States, an extensive collection of Barbie or Polly Pocket will soon become a luxury material. Trumps Zölle of 145% from China. According to the Toy Association 80% of all toys sold in the United States in China. Mattels CFO Anthony Disilvestro said during the gain in the profit on Monday that the current tariffs would cost the company around $ 270 million this year - "and that before taking measures to reduce."
price increases in toys
There are already signs that some prices rise. According to a product price analysis by the Telsey Advisory Group, the price for a barbie doll with a swimsuit at Target in the middle of April rose by $ 42.9% to $ 14.99 within a week. This is one of the largest climbs that were documented by the market research company.
Mattel's requirements for zerozölle
Kreiz to investors on Monday that "among the current scenarios that we take into account", he expects 40% to 50% of its products to continue to have a price of $ 20 or less. However, he also spoke out on toys and games worldwide for zero tariffs. "Null tariffs for toys offer the largest number of children and families access to play," he added.
Future strategies of Mattel
Mattel announced on Monday that the tariffs did not affect the profits in the first three months of the year. In order to reduce future losses, the company plans to diversify its supply chain outside of China and "where necessary to make price adjustments in the US business."
production shift and setbacks
According to Kreiz, Mattel receives products from seven different countries. He expects China to identify less than 40% of the global production of his toys in 2025, which is only half as much as the industry average. He also plans to reduce US imports from China to less than 15% and to less than 10% by 2027. On Monday, Kreiz announced that the production of 500 toys from China is shifted to other countries.
Mattel withdraws forecast
Mattel also joins the list of companies that have exposed their complete annual forecast for 2025, as it is difficult to predict how consumer expenditure, especially in the lucrative season of the holidays, will develop. When companies withdraw their forecasts, this is a big thing because it creates considerable uncertainties - a situation that investors and analysts want to refrain from.
For reporting, Elisabeth Buchwald from CNN also wore.
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