:max_bytes(150000):strip_icc()/GettyImages-2183851839-f1bc482797f04f82a47b069e725628f9.jpg?w=1920&resize=1920,1267&ssl=1 "Mattel Stock Jumps as Toymaker Looks to Supply Chain, Prices to Limit Tariffs Threat | Global News Avenue")
Mattel Stock Jumps as Toymaker Looks to Supply Chain, Prices to Limit Tariffs Threat
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2183851839-f1bc482797f04f82a47b069e725628f9.jpg)
Key points
- After Barbie and Hot Wheel manufacturers announced plans to mitigate the tariff threat by repositioning their supply chains and forecasting surprising growth in sales growth in 2025, the U.S. The share price of Thai stock rose.
- Mattel said it will take “miscuous actions” to limit the impact of tariffs.
- UBS analysts say Mattel’s forecast for 2025 is a big surprise, and Mattel can transfer some production to China.
Mattel (padStocks rose more than 12% on Wednesday after manufacturers of Barbie dolls and hot wheels announced plans to mitigate threats tariff By relying on supply chains and prices to rise. It can also predict that sales growth will bring amazing growth in 2025.
The Toymaker said on Tuesday that net sales are expected to grow 2% to 3% in 2025, while sales in 2024 fell 1.1% year-on-year. It also guides adjustments Earnings per share (EPS) Between $1.66 and $1.72.
“Guidelines include the expected impact of the new U.S. tariffs announced on February 1 on China, Mexico and Canada imports, as well as the mitigation actions we plan to take, including leveraging the strength of the supply chain and potential prices,” Mattel said.
UBS says Mattel can remove some production from China to limit tariff impact
“Despite the U.S. tariffs on China, Canada and Mexico, Mattel’s biggest surprise is guiding EPS growth,” UBS analysts said on Wednesday.
“It sounds like Mattel’s mitigation efforts may include a combination of transferring production, price and supply chain optimization from China,” they wrote.
According to the transcript of revenue calls provided by Alphassense, Mattel originated from seven countries toys from seven countries, and expects to be less than 40% of the toys in China. CFO Anthony P. Disilvestro. He added that Mexico’s margin is less than 10%, and he said that by 2027, “it is not expected to account for more than 25% of total global production.”
The Toymaker had net sales on Tuesday of $1.65 billion, and earnings per share adjusted to 35 cents, up 2% year-on-year. Visible Alpha revenue was $1.63 billion and adjusted earnings per share was 19 cents.
US President Donald Trump implements 10% tariff on Chinese imports Tuesday morning, a few hours later China announces Its own tariffs on U.S. imports. 25% tariff on imports Mexico and Canada It has been postponed for a month, but it is still imminent.
:max_bytes(150000):strip_icc()/GettyImages-2183851839-f1bc482797f04f82a47b069e725628f9.jpg?w=1200&resize=1200,0&ssl=1&description=Mattel+Stock+Jumps+as+Toymaker+Looks+to+Supply+Chain%2C+Prices+to+Limit+Tariffs+Threat+%7C+Global+News+Avenue){kind=link}