Unlock the publisher's digest free
Roula Khalaf, editor -in -chief of the FT, selects her favorite stories in this weekly newsletter.
Mattel, the Toymaker behind Barbie Dolls and Uno Card Games, suspends financial advice to investors and the higher price warning for American consumers when he confronts the costs of US President Donald Trump's prices.
Californian Matel said on Monday that “the volatile macroeconomic environment and the evolution of the American tariff situation” had made it difficult to forecast consumption and sales expenses until the holiday season this year, which caused the break in the councils.
The 42 billion dollars American toys was taken in the middle of Trump Commercial war with Chinawhose exports to the country are subject to 145% of prices.
Last week, the president seemed to reject concerns about potential impacts, saying that “maybe children will have Two dolls Instead of 30 dolls. . . And maybe the two dolls will cost a few dollars more than they would normally. “
Mattel said it accelerated efforts to diversify the production of China, make changes to its supply and mix of products, and will plan to increase the prices of American customers.
“We speed up the plans to reduce the product from China in the United States as part of our response to prices,” said Ynon Kreiz, managing director, in an interview. “The price, in the actions we take, is the third priority.”
Kreiz refused to fight against comments from Trump's “two dolls”, who aroused controversy.
“We all know the importance of quality products and brands of trust in industry and the importance of toys and games in children's lives and children's development,” said Kreiz. “We are therefore very attached to the uninterrupted offer of quality products to a wide range of affordable prices for children and families around the world.”
China represents 80% of toys sold in the United States, according to the Toy Association, a commercial group. The 145% rate resulted in anxiety and warnings of the empty shelves of certain manufacturers. Hasbro, the manufacturer of Play-DOH modeling matches and monopoly advice games, revealed that prices could increase the costs of $ 300 million this year, about a fifth of its annual cost of goods.
“In the end, the prices result in higher consumer prices, potential job losses while we adapt to the absorption of increased costs and the reduction of profits for our shareholders,” said Chris Cocks, general manager of Hasbro last month.
Mattel said less than 40% of its production was in China. Kreiz said Mattel would have a factory that remained there by the end of the year, against four several years ago, and that it expected to strengthen the competitive position of the company when it manages the prices.
Mattel's previous directives for net sales growth of 2 to 3% this year had taken Trump's prices into account in Mexico, Canada and China announced in February, but no new prices imposed in April, including higher tasks on China.
Mattel said the prices had no effect on his performance in the first quarter. Net income has challenged Wall Street's expectations for a decrease in 2% to 827 million dollars.
The company declared a net loss of $ 40 million, $ 2 million more than the expectations and wider than the loss of $ 28 million a year earlier, due to the increase in sales and administration costs. Mattel generally signals a loss in the first seasonal quarter, but it was profitable on an annual basis.
