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New China tariffs may mean higher toy prices, but Mattel and Hasbro are working to blunt the impact - MarketWatch

1. Mattel may raise prices due to ongoing China tariffs. 2. Tariffs could impact gross margins by 100 basis points. 3. Mattel has diversified sourcing, reducing reliance on China to 40%. 4. UBS maintains a buy rating for Mattel amidst uncertainties. 5. The toy industry shows resilience despite economic downturns.

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FAQ

Why Bullish?

Mattel's diversification strategies mitigate tariff impacts, historically enhancing price stability. Past examples show companies that adapt supply chains can maintain profitability despite increased costs.

How important is it?

The article discusses tariff impacts and responses that are critical to Mattel's operations, indicating a strong market influence.

Why Long Term?

The long-term strategy to diversify manufacturing will stabilize operations over time, similar to how other companies recovered from previous tariff impacts through supply chain adjustments.

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