Mattel(MAT) Fox Business·2025-05-06 11:41Core Viewpoint - Mattel is raising prices on some toys and reducing reliance on China-sourced products due to a volatile macro-economic environment and evolving U.S. tariff landscape [1][5]. Group 1: Financial Impact and Strategy - Mattel expects around $270 million in incremental costs from tariffs in 2025, but plans to offset these costs through various mitigating actions [2]. - The company is taking steps to diversify its supply chain and reduce reliance on China-sourced products, aiming to cut imports from China to under 15% by next year [6][11]. - Despite tariffs not affecting Mattel's first quarter financial results, the company is implementing measures to fully offset potential future cost impacts [5]. Group 2: Market Conditions and Consumer Behavior - The current macro-economic environment makes it difficult to predict consumer spending and U.S. sales for the remainder of the year and holiday season [5]. - Many companies have halted production and shipping to the U.S. due to tariffs from China, indicating significant disruption in the industry [2]. Group 3: Production Adjustments - Mattel is increasing production of its UNO card game in India as part of its strategy to mitigate tariff impacts [9]. - The company imports Barbie dolls and Hot Wheels toys from Indonesia, Malaysia, and Thailand, which have also faced tariffs [9].