Mattel’s Struggle to Sell Barbie Dolls and Baby Gear Amid Tariff Uncertainty
Toy-maker Mattel is facing a significant challenge in selling its iconic Barbie dolls and baby gear, as the full impact of the Trump administration’s tariff policy takes its toll on the company. According to Mattel’s CEO Ynon Kreiz, retailers have been less inclined to make orders due to the levy turmoil, which has resulted in a buildup of unsold inventory worth $827 million. This is a significant increase of $89 million from the previous year.
Mattel’s third-quarter profit fell as Barbie sales dropped 17 percent. GABRIEL BOUYS/AFP via Getty Images
Impact on Sales and Revenue
Mattel’s sales fell by 6 percent year-over-year to $1.7 billion during the July-September quarter, while its net income declined by 25 percent to $278 million. The revenue hit has been particularly sharp in Mattel’s core markets, with U.S. sales falling 10 percent and North American sales dropping 12 percent. This reflects a “significant shift in retailer ordering patterns,” according to Chief Financial Officer Paul Ruh.
The company is less reliant on foreign manufacturers than other toy-makers, producing around 40 percent of its products in China, compared to the industry average of 80 percent. However, it has still been forced to raise prices in response to tariffs, which began at the start of the third quarter and will continue through the end of 2025.
Holiday Hopes and New Opportunities
Despite the earnings miss, Mattel’s toys are still expected to be popular during the holiday season. Orders have picked up significantly since the beginning of the fourth quarter as retailers prepare for the gift-heavy season, said Kreiz. The company expects full-year sales to rise between 1 percent and 3 percent in 2025.
One bright spot is Hot Wheels, which generated 8 percent more revenue year-over-year. “We are successfully driving demand across all ages, with adults being the fastest-growing audience for Hot Wheels and over 100 million adults identifying themselves as toy vehicle owners,” Ruh said. Mattel is also doubling down on intellectual property (IP) monetization, teaming up with Netflix for a product line inspired by KPop Demon Hunters.
For more information on Mattel’s struggles with tariff pressure and its impact on Barbie and Fisher-Price sales, visit Here
Image Source: observer.com
