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Toy company Mattel Inc (NASDAQ:MAT) beat analyst estimates for first-quarter revenue and earnings per share Monday.
Attention now turns to the impact of President Donald Trump’s tariffs, with the company ready to raise prices ahead of Christmas.
What Happened: Mattel posted first-quarter revenue of $827 million, beating an analyst estimate of $786 million. The company reported a loss of 3 cents per share, beating an estimate of 10 cents per share, according to data from Benzinga Pro.
Mattel CEO Ynon Kreiz called the quarter “strong” and said the company continued its “operational excellence.”
“Our brands are thriving, our products and experiences stand out in the marketplace, and our balance sheet gives us resilience and flexibility to execute our strategy,” Kreiz said.
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The company said it will take action to offset incremental costs from tariffs, including diversifying its supply chain, improving product sourcing, and raising prices when necessary.
Mattel also paused full-year 2025 guidance given the “volatile macro-economic environment and evolving U.S. tariff landscape.”
Raised prices by the owner of Barbie could prove a test of whether parents will be willing to spend more on toys for Christmas or cut back on the number of toys given higher prices, something President Trump illustrated in an example answering a reporter’s question.
Trump said China has made over a trillion dollars selling the United States things it doesn’t need. The president brushed aside concerns about store shelves being empty, including those selling toys.
“Well, maybe the children will have two dolls instead of 30 dolls,” Trump said. “And maybe the two dolls will cost a couple of bucks more than they would normally.”
Trump said ships from China are “loaded with stuff we don’t need.”
The president’s latest comments underscore his administration’s stance that more items should be manufactured in the U.S., even if they cost consumers more.
In an interview with CNBC, Kreiz downplayed the notion of Mattel bringing manufacturing to America, a goal of Trump’s with tariffs. “We don’t see that happening,” he said.
Kreiz noted that portions of the toymaking process, such as design, development, product engineering and brand management, occur in America.
