Mattel accelerates the effort to move China’s production as the rates reach toys

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Mattel, the Toymaker behind Barbie dolls and UNO card games, suspends financial orientation to investors and higher pricing warning for North -Americans, as it faces the costs of the United States President Donald Trump.

California Mattel On Monday, he said that the “volatile macroeconomic environment and the U.S.’s tariff situation” made it difficult to predict consumers’ costs and sales until this year’s crucial holiday season, causing the orientation pause.

U.S. toy market $ 42 million has been caught in the middle of Trump Trade War with ChinaCountry exports are subject to 145 percent of rates.

Last week, the President seemed to dismiss worries about possible impacts, saying “maybe children will have Two dolls instead of 30 dolls. . . And maybe the two dolls will cost a couple more dollars than normally. “

Mattel said he increased efforts to diversify production far from China, make changes to his product and combine and fasten to the prices of North -American clients.

“We are accelerating plans to reduce the product of origin in China in the United States as part of our response to rates,” said Ynon Kreiz, CEO in an interview. “The prices, in the actions we are doing, is the third in priority.”

Kreiz refused to address the comments of Trump’s “two dolls”, which have caused the controversy.

“We all know the importance of quality product and industry trust brands and the importance of toys and play in children’s lives and the development of children,” said Kreiz. “So we are very committed to the uninterrupted supply of quality products to a wide range of affordable prices for children and families around the world.”

China represents 80 percent of toys sold in the United States, according to the Toy Association, a trade group. The 145 percent rate has caused anxiety and notice of empty shelves of some manufacturers. Hasbro, the Play-Doh Clay and Monopoly Modeling Board Manufacturer, has revealed that rates could increase costs to $ 300 million this year, or about fifth of its annual goods cost.

“Ultimately, the rates translate into higher prices of consumers, possible labor losses as we adjust to absorb the increased costs and the reduced benefits for our shareholders,” the chief director of Chris Cocks, the CEO of Hasbro, told the analysts.

Mattel has said that less than 40 percent of his production was in China. Kreiz said that Mattel would have a factory that was there at the end of the year, below four years ago, and hoped to strengthen the company’s competitive position as he manages the rates.

The previous orientation of Mattel for net growth of net sales of 2 to 3 percent this year was taken into account the Trump’s rates in Mexico, Canada and China announced in February, but not the new rates imposed in April, which include the highest duties in China.

Mattel said the rates had no effect on their performance in the first quarter. Net revenue challenged Wall Street’s expectations for a decrease increasing 2 % to $ 827 million.

The company recorded a net loss of $ 40 million, $ 2 million more than expectations and wider than $ 28 million loss a year earlier, due to increasing sale and sale expenses. Mattel usually reports a loss in the first quarter of the season, but has been profitable annually.