The Barbie maker's comments as it announced better than expected quarterly sales.
28 July 2021, 7:21 am·2-min readToy maker Mattel says it has to raise prices in the run-up to Christmas as the industry giant faces higher costs.The comments come after a rise in costs of raw materials and shipping, as the global economy recovers from the pandemic.
At the same time, the maker of Barbie dolls announced better than expected sales of more than $1bn (£720m).Like rival Hasbro, Mattel is emerging from the impact of Covid that saw shops closed and supply chains disrupted."We will be looking at increasing prices in the second half of [the] year," Mattel's chief executive Ynon Kreiz told the BBC.
"We haven't broken out [which products will be affected], but this is in response to some of the inflationary pressures," he added.Mr Kreiz also said his company was not alone in having to put up its prices: "We're not the only ones who did it, in our industry everyone did - and no-one is surprised by [price increases]." headtopics.com
He was speaking as the company unveiled second quarter figures that beat Wall Street forecasts.Net sales for the period jumped by 40% compared to the same time last year to $1.03bn.That was boosted by a 46% rise in billings for Barbie, the company's biggest brand.
Companies in many industries around the world have had their operations disrupted by delays to shipping and problems getting goods through ports due to the pandemic.Mr Kreiz said Mattel encountered supply chain issues due to problems with shipping but had got around the worst of them due to the scale of the business.
"We were able to leverage our size and partnerships that we have with our vendors and retail partners and mitigate some of these issues, so we did not have any impact on our business in the second quarter," he said.On Monday, rival toy maker Hasbro announced better than expected net revenues of $1.32bn, a rise of 54%.
Hasbro also said it aimed to avoid pandemic-related supply chain issues by increasing its shipping capabilities and speeding up the process of sourcing its products.Story continuesIn recent years Mattel has made Barbie more diverse, with dolls based on different role models and professions. headtopics.com
Earlier this month the firm launched a doll based on tennis superstar Naomi Osaka.Revenues were also boosted by a 67% jump in billings for the Hot Wheels toy car brand.The firm said it expects Barbie content on Netflix and an upcoming movie starring Margot Robbie, as well as a new video game based on Hot Wheels, to help maintain both brands' popularity this year.
Mattel shares were more than 5% higher in extended New York trade after the earnings announcement.You may also be interested in: Read more: Yahoo Singapore »
Permission to Dance? BTS sing their way through United Nations
NEW YORK — Fully vaccinated South Korean band BTS danced its way through the United Nations (UN) in a Monday (Sept 20) broadcast, promoting global goals tackling poverty, inequality, injustice and climate change ahead of the annual UN gathering of world leaders.
Logitech sales rise 66per cent on higher demand amid work-from-home activityComputer peripherals maker Logitech said on Tuesday it was seeing no let-up in demand from stay-at-home workers, after reporting higher operating ...
True coffee lovers will shoulder the price hike. === prices have spiked 18% in the last three months
LG Display's Q2 profit beats estimates as panel prices rise; shares upSouth Korea's LG Display Co Ltd on Wednesday posted a better-than-expected second-quarter profit as pandemic-led demand for TVs and laptops drove ...
Japan's service prices rise for 4th straight month as demand reboundsJapan saw the prices companies charge each other for services rise for the fourth straight month in June, data showed on Tuesday, a sign the ...
Consumer price index of vegetables rose by less than 1% in June: MTISINGAPORE: The consumer price index (CPI) of leafy and fruit vegetables increased by less than 1 per cent in June, said Minister for Trade and ...