Mattel stock rises on plans to deal with tariffs on toys
The post Mattel stock rises on plans to deal with tariffs on toys appeared on BitcoinEthereumNews.com. China is a big importer of US toys, but Mattel has a plan to deal with it. Toys have been a key focus of the tariff debate as the industry, which imports a lot of toys from China, is subject to higher tariffs. The prospect of higher tariffs on toys prompted the viral quote from President Donald Trump over the weekend when he said on Meet the Press, “I’m just saying [Americans] don’t need to have 30 dolls, they can have three,” moderator Kristen Welker. On Monday, one of the nation’s largest toy companies, Mattel (NASDAQ: MAT), reported surprisingly good earnings, led, in part, by higher sales of dolls. Mattel saw net sales rise 2% in the quarter to $827 million, which sailed past estimates of $786 million. Meanwhile, gross profit was up 5% to $408 million on lower cost of sales. Doll sales were up 1% to $297 million, led by Disney Princess and Wicked dolls, while toy car sales, including Hot Wheels, were up 4% to $308 million. Also, action figures, games, building sets and other revenue jumped 12% to $193 million. Baby and toddler sales were down 6%. However, 11% higher selling, general and administrative expenses caused the company to post a net loss of $40 million, or -12 cents per share in the quarter. But the adjusted earnings of -3 cents per share, up year-over-year from -5 cents per share, and it topped analysts’ estimates of 9 cents per share. The earnings beat and revenue increase sent Mattel stock rising about 3% on Tuesday to around $16.60 per share. Investors were buying low, as the stock is trading at just 10 times earnings, but the outlook is a bit murky due to tariffs. No guidance due to tariff uncertainty Mattel officials did not offer guidance for…
The post Mattel stock rises on plans to deal with tariffs on toys appeared on BitcoinEthereumNews.com.
China is a big importer of US toys, but Mattel has a plan to deal with it. Toys have been a key focus of the tariff debate as the industry, which imports a lot of toys from China, is subject to higher tariffs. The prospect of higher tariffs on toys prompted the viral quote from President Donald Trump over the weekend when he said on Meet the Press, “I’m just saying [Americans] don’t need to have 30 dolls, they can have three,” moderator Kristen Welker. On Monday, one of the nation’s largest toy companies, Mattel (NASDAQ: MAT), reported surprisingly good earnings, led, in part, by higher sales of dolls. Mattel saw net sales rise 2% in the quarter to $827 million, which sailed past estimates of $786 million. Meanwhile, gross profit was up 5% to $408 million on lower cost of sales. Doll sales were up 1% to $297 million, led by Disney Princess and Wicked dolls, while toy car sales, including Hot Wheels, were up 4% to $308 million. Also, action figures, games, building sets and other revenue jumped 12% to $193 million. Baby and toddler sales were down 6%. However, 11% higher selling, general and administrative expenses caused the company to post a net loss of $40 million, or -12 cents per share in the quarter. But the adjusted earnings of -3 cents per share, up year-over-year from -5 cents per share, and it topped analysts’ estimates of 9 cents per share. The earnings beat and revenue increase sent Mattel stock rising about 3% on Tuesday to around $16.60 per share. Investors were buying low, as the stock is trading at just 10 times earnings, but the outlook is a bit murky due to tariffs. No guidance due to tariff uncertainty Mattel officials did not offer guidance for…
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