Mattel Group reports stable sales despite price increases
Kids don’t always play with toys according to the manufacturer’s instructions. Charles Roark/Flick
Mattel has been forced to raise prices after shipping and plastic rates increased.
Mattel said its third-quarter revenue rose 8 percent to $1.8 billion and that the Christmas season would likely go very well in terms of sales.
Chief executive Ynon Kreiz told the BBC that Mattel was working hard to get toys on the shelves despite supply disruptions.
All companies around the world have faced sharp increases in shipping costs as Covid disrupts ports and containers go up.
The rising cost of resin for Mattel’s plastic toys also meant price rises for consumers, Mr. Kreiz said, although he declined to say how much Mattel toys had gone up by.
Mr. Kreiz said that parents had prioritized spending on their children.
He said whether shipping and raw materials costs would continue to rise was “volatile and hard to predict”.
However, he said that if necessary higher toy prices and cost savings would “offset the impact of inflation on our business”.
Barbie dolls and Hot Wheels cars sold well in the third quarter, while there was a 50%-growth in action figures for franchises including Jurassic World and Masters of the Universe.
Mattel’s products include Polly Pocket, Magic 8 balls, Disney Classics and Fisher-Price brands.
The firm began in 1945, as a collaboration between Ruth and Elliot Handler, and Harold “Matt” Matson.