Mattel, a Barbie manufacturer, stated that higher prices haven’t dampened peoples desire for toys in the lead-up to Christmas.

After soaring raw material and shipping costs, the toy giant increased prices.

The toymaker said its third quarter sales grew 8% to $1.8bn (£1.1bn), and that it expected a strong Christmas.

Ynon Kreiz (chief executive at Mattel) told BBC that Mattel has been working tirelessly to ensure toys are on shelves despite disruptions in supply.

Covid disruptions containers and ports around the globe has caused huge increases in shipping costs for companies all over the world.

These are the challenges facing toy industries, as well as other business sectors, said Mr Kreiz.

We were affected by disruptions in global supply chains [in the third quarter]He said, “But we worked through them.” He said, “But they were overcome.”

Mattel plastic toys have seen a rise in resin costs, which has led to price increases for customers, according to Mr Kreiz. However, he refused comment on how much Mattel toys were costing.

Kreiz stated that parents prioritized their spending for children.

He stated that whether raw materials and shipping costs would rise in the future was uncertain and volatile.

He said, however that higher prices for toys and savings could be made to “offset” the inflation impact on his business.

Hot Wheels and Barbie Barbie dolls were well-sold in the third quarter. There was also a 50% increase in action figures from franchises like Jurassic World or Masters of the Universe.

The Entertainer, one the UK’s most prominent toy retailers, said last week that delays in UK ports could cause shortages.

Many retailers are worried about future stocks because of the container congestion at Felixstowe’s ports.

  • The port delay is causing Christmas stock shortages according to toys shops

Mattel, Mr Kreiz stated that Mattel “does what it can…to make sure there are presents on shelves”.

He said that the company had increased production and secured additional freight containers. They also have access to more ports for supplies.

He said, however: “I cannot say that we will satisfy all the demand.”

However, he stated that he expected a “strong holiday season” for both parents and children. He also said that he expects “a happy Christmas with plenty of toys under the trees.”

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  • Worldwide shortages

Rival Hasbro stated this summer it was working to prevent pandemic supply chain problems by improving its shipping capabilities, and speeding up its process for sourcing products.

Mattel stock rose by 6% during extended New York trading following the announcement.

Mattel has been making Barbie more diverse in recent years with dolls inspired by different professions and roles.

A doll that was inspired by Naomi Osaka (tennis star) was launched this year.

Mattel has a variety of products including Polly Pocket, Magic 8 balls and Disney Classics.

As a result of a partnership between Ruth Handler and Elliot Handler and Harold Matson (“Matt”) Matson, the company was established in 1945.

Other Topics

  • Companies
  • Christmas
  • Toys
  • Shipping industry

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Source: BBC.com

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