Latest news with #Mattel
Malay Mail
3 hours ago
- Business
- Malay Mail
The magic shrinks: Toy industry trims the fun as China tariffs squeeze margins
NEW YORK, July 24 — This holiday season, US parents may have to make an extra pit stop — not for toys, but for the batteries that power them, as manufacturers pare down on frills and packaging to cut costs amid rising tariffs. Toy makers that serve retail giants like Walmart, Target and Amazon are reducing the number of accessories in toy kitchen sets, removing batteries from electronic playsets, simplifying doll makeup and reducing packaging, as a 30 per cent blanket tariff currently imposed on Chinese imports puts a damper on their bottom lines. The duties imposed on China by US President Donald Trump are particularly painful for companies like Hasbro and Mattel, as 80 per cent of toys sold in the US come from China, according to trade group The Toy Association. Educational toy maker Popular Playthings — whose China-made animal sets, trucks, and magnetic food sets can be bought on Amazon — is delaying and paring down a magnetic cake set it had planned to launch in June, CEO Jason Cheung said in an interview. The company is reducing the power of the magnet, using cheaper packaging, and removing one of two serving plates that were to come with the set — all while upping the price from US$29.99 (RM126.49) to US$34.99. 'Originally it would come with two plates so two kids can have cake at the same time,' Cheung said. Now, 'one (child) will serve, while the other can eat.' 'Still multiplayer, but less cost,' Cheung said, while adding 'the original item would have been better.' Toys are a top category in the US holiday shopping season, the biggest spending season of the year. Adobe Analytics projected an US$8.1 billion online spend on toys last holiday season, marking a 5.8 per cent increase from the previous year. Toy maker Basic Fun!, which sources most of its products from China, makes 40 per cent of its annual sales in North America through Amazon, meaning the company can't risk removing merchandise from the ubiquitous e-commerce platform this holiday season, CEO Jay Foreman told Reuters. The company, which also sells to Walmart and Target, is offering retailers the option to remove batteries from the packages of its electronic toys, and plans to reduce or remove its toys' packaging in 2026, said Foreman. 'The consumer will either pay more or get less value,' Foreman said. Some companies, like Bratz and L.O.L. Surprise! dolls-maker MGA Entertainment, are moving supply chains out of China, — a costly endeavour — while others are reducing the number of items available on shelves this winter. Isaac Larian, the CEO of MGA Entertainment, one of the biggest US privately-held toy companies, said it takes nine to 12 months to make cost-cutting changes to toys. MGA is planning to modify its products for later next year. 'But we cannot take the magic out of the box,' Larian said. 'Too much cost-cutting, destroys the play value for the toy, and you turn off the kids.' Historically, sector giant Mattel has invested in more 'playable packaging' — making the boxes part of the game itself — to reduce costs. Hasbro, which sources roughly 50 per cent of its US toy and game volume from China, said on a Wednesday earnings call it 'retooled and reimagined' its board games Candy Land and Operation, as part of a larger initiative to revamp its materials sourcing, manufacturing processes, designs and packaging to help with cost reductions amid tariffs. ECR4Kids — whose roughly 1,000 school and daycare supplies range from toys and games to bookshelves and play mats — also sources primarily from China, and makes 'well over 50 per cent' of its revenue from selling wholesale to Amazon, according to managing partner Lee Siegel. 'We're very tethered to Amazon,' Siegel told Reuters, explaining that he can't make substantive changes to the products he sells on the platform, including a US$175 foam climbing set for toddlers. For some products, though, the company is reducing variations in color and model, and prioritizing more efficient packaging that uses every inch of space. These kinds of efficiency efforts were on Siegel's radar even before tariffs, he said. 'But now, you really have no choice.' — Reuters
Forbes
5 hours ago
- Business
- Forbes
Tariff Uncertainty Hurt Toy Sales In Q2, Hasbro And Mattel Report
Play-Doh Barbie, a Hasbro toy resulting from a rare collaboration with Mattel, is one of the toys ... More that could be hard to find during the holidays due to tariff impact. Sales of traditional toys by the country's two largest toy manufacturers, Hasbro and Mattel, fell during the second quarter, due to delayed ordering by retailers worried about possible price increases, the companies said in releasing their earnings reports Wednesday. Both companies said they believe they are well positioned to weather any potential tariff impact in the second half of the year. But they acknowledged they can't really predict how much consumers will be willing to spend on toys if other household expenses increase due to tariffs. Hasbro CEO Chris Cocks also warned toy companies might have trouble restocking sold-out holiday toys due to delayed ordering during the first part of the year. Hasbro and Mattel both delivered upside surprises with their earnings. Hasbro beat expectations for earnings and revenue. and Mattel beat expectations for earnings. The ongoing tariffs concerns were reflected in Wall Street's reaction to the second quarter results, however. Hasbro, which reported its results before the market opened Wednesday, ended the day down 0.9%, at $76.84. Mattel, which reported after the market closed, was down 4.9%. Hasbro's net sales were down 1%, less than analysts expected, while Mattel suffered a greater than expected revenue drop of 6%. Diversifying Away From Traditional Toys Both companies have been shifting away from traditional toys as their dominant revenue producer for years before the current tariff uncertainty. Hasbro's second quarter earnings report again underscored the wisdom of its 1999 purchase of gaming publisher Wizards of the Coast. The Wizards of the Coast and digital gaming business had revenue growth of 16% during the quarter, while the consumer products segment, which includes traditional toys, decreased by 16%. Magic: The Gathering, a collectible card game Hasbro acquired when it bought Wizards of the Coast, has seen particularly explosive growth in recent years, with revenue up 23% during the second quarter. Final Fantasy Magic Release Sets Record For Sales The most recent Magic: The Gathering release, based on the Final Fantasy Japanese science fantasy video games, is the highest grossing release to date, achieving $200 million in revenue in one day, Cocks said in the earnings conference call. The Magic brand also is helping Hasbro lean into the trend toward in-person play experiences for adults. 'Organized play is on fire,' Cocks said during the call. 'We saw a nearly 40% year-over-year increase in unique players during the first half of 2025.' Hit Toys Could Be Hard To Find Cocks cautioned that because initial tariffs fears caused retailers to delay orders, some popular toys might not be able to be restocked if they sell out before Christmas. He cited Play-Doh Barbie, the collaboration that combines Hasbro's Play-Doh brand with Mattel's Barbie; the new Nano-Mals toy line, and toys featuring Evie, Peppa Pig's new baby sister, as items that could be hard to find if parents wait to buy them. Hasbro is well-positioned for the holiday season, with a strong lineup of new products, James Zahn, Editor-in-Chief of trade publication The Toy Book, said. 'Magic: The Gathering is a sales behemoth, and licensed collaborations, like Final Fantasy, continue bringing freshness into the game. With three more tentpole releases left this year, Magic is on a roll,' Zahn said. Hasbro also has a host of new product reveals and activations planned at Comic-Con International San Diego this weekend, Zahn said, for brands including G.I. Joe, BeyBlades, Marvel, Star Wars, and Dungeons and Dragons. Mattel Betting On Entertainment Division Mattel is looking for sources of growth beyond traditional toys by leaning into its entertainment division. It recently announced the formation of Mattel Studios, combining its film and television units, and hopes to release one to two films per year, starting in 2026 with Masters of the Universe and Matchbox. It also has a Barbie animated film in the works with the company that created Minions, Despicable Me 3 and the Super Mario Bros. movie. 'Barbie is more than a doll. She is a pop culture icon that transcends generations,' Mattel CEO Ynon Kreiz said in the Mattel earnings call. 'We look forward to creating animated film history together and further strengthening Barbie's standing at the forefront of current culture.' Mattel recently announced that it has partnered with OpenAI to use artificial intelligence tools to create new ways to interact with Mattel toy characters. AI-Enhanced Barbie Could Be In Mattel's Future AI has the power has the power to "broaden the reach of our brands in new and exciting ways,' Kreiz said on the call. 'Mattel's work with OpenAI will enable us to leverage new technologies to solidify our leadership and innovation and reimagine new forms of play. We plan to share more later this year,' he said. While Mattel's sales decline was slightly larger than expected by analysts, 'given this year's challenges,' the toymaker still had 'some wins to celebrate' in the second quarter, Zahn said. It reported growth in its American Girl brand and 'the big year at the box office bodes well for Mattel as Jurassic World Rebirth and A Minecraft Movie have driven big business,' Zahn said. For the holidays, Hot Wheels, new dolls inspired by the Wicked for Good movie, updates to the Monster High brand, and other product lines, are expected to boost sales, Zahn said. In terms of tariff impact, large companies like Mattel and Hasbro have advantages that help them mitigate the impact, Zahn said. They 'have deep enough pockets to pull certain levers that smaller companies just can't manage, and that could help both Mattel and Hasbro gain market share toward the end of the year if they can deliver products where others cannot,' he said,
Japan Times
9 hours ago
- Business
- Japan Times
Toy makers nix batteries and other materials to save costs amid tariff war
This holiday season, U.S. parents may have to make an extra pit stop — not for toys, but for the batteries that power them, as manufacturers pare down on frills and packaging to cut costs amid rising tariffs. Toy makers that serve retail giants like Walmart, Target and Amazon are reducing the number of accessories in toy kitchen sets, removing batteries from electronic playsets, simplifying doll makeup and reducing packaging, as a 30% blanket tariff currently imposed on Chinese imports puts a damper on their bottom lines. The duties imposed on China by U.S. President Donald Trump are particularly painful for companies like Hasbro and Mattel, as 80% of toys sold in the U.S. come from China, according to trade group The Toy Association. Educational toy maker Popular Playthings — whose China-made animal sets, trucks, and magnetic food sets can be bought on Amazon — is delaying and paring down a magnetic cake set it had planned to launch in June, CEO Jason Cheung said in an interview. The company is reducing the power of the magnet, using cheaper packaging, and removing one of two serving plates that were to come with the set — all while upping the price from $29.99 to $34.99. "Originally it would come with two plates so two kids can have cake at the same time,' Cheung said. Now, "one (child) will serve, while the other can eat." "Still multiplayer, but less cost," Cheung said, while adding "the original item would have been better." Toys are a top category in the U.S. holiday shopping season, the biggest spending season of the year. Adobe Analytics projected an $8.1 billion online spend on toys last holiday season, marking a 5.8% increase from the previous year. Toy maker Basic Fun!, which sources most of its products from China, makes 40% of its annual sales in North America through Amazon, meaning the company can't risk removing merchandise from the ubiquitous e-commerce platform this holiday season, said CEO Jay Foreman. The company, which also sells to Walmart and Target, is offering retailers the option to remove batteries from the packages of its electronic toys, and plans to reduce or remove its toys' packaging in 2026, said Foreman. "The consumer will either pay more or get less value," Foreman said. Some companies, like Bratz and L.O.L. Surprise! dolls-maker MGA Entertainment, are moving supply chains out of China — a costly endeavor — while others are reducing the number of items available on shelves this winter. Isaac Larian, the CEO of MGA Entertainment, one of the biggest U.S. privately-held toy companies, said it takes nine to 12 months to make cost-cutting changes to toys. MGA is planning to modify its products for later next year. "But we cannot take the magic out of the box," Larian said. "Too much cost-cutting destroys the play value for the toy, and you turn off the kids." Historically, sector giant Mattel has invested in more "playable packaging" — making the boxes part of the game itself — to reduce costs. Hasbro, which sources roughly 50% of its U.S. toy and game volume from China, said on a Wednesday earnings call it "retooled and reimagined" its board games Candy Land and Operation, as part of a larger initiative to revamp its materials sourcing, manufacturing processes, designs and packaging to help with cost reductions amid tariffs. ECR4Kids — whose roughly 1,000 school and daycare supplies range from toys and games to bookshelves and play mats — also sources primarily from China, and makes "well over 50%" of its revenue from selling wholesale to Amazon, according to managing partner Lee Siegel. "We're very tethered to Amazon," Siegel said, explaining that he can't make substantive changes to the products he sells on the platform, including a $175 foam climbing set for toddlers. For some products, though, the company is reducing variations in color and model, and prioritizing more efficient packaging that uses every inch of space. These kinds of efficiency efforts were on Siegel's radar even before tariffs, he said. "But now, you really have no choice."
Yahoo
10 hours ago
- Business
- Yahoo
Toy makers nix batteries, other materials to save costs during tariff war
By Arriana McLymore and Nicholas P. Brown NEW YORK (Reuters) -This holiday season, U.S. parents may have to make an extra pit stop - not for toys, but for the batteries that power them, as manufacturers pare down on frills and packaging to cut costs amid rising tariffs. Toy makers that serve retail giants like Walmart, Target and Amazon are reducing the number of accessories in toy kitchen sets, removing batteries from electronic playsets, simplifying doll makeup and reducing packaging, as a 30% blanket tariff currently imposed on Chinese imports puts a damper on their bottom lines. The duties imposed on China by U.S. President Donald Trump are particularly painful for companies like Hasbro and Mattel, as 80% of toys sold in the U.S. come from China, according to trade group The Toy Association. Educational toy maker Popular Playthings - whose China-made animal sets, trucks, and magnetic food sets can be bought on Amazon - is delaying and paring down a magnetic cake set it had planned to launch in June, CEO Jason Cheung said in an interview. The company is reducing the power of the magnet, using cheaper packaging, and removing one of two serving plates that were to come with the set -- all while upping the price from $29.99 to $34.99. "Originally it would come with two plates so two kids can have cake at the same time,' Cheung said. Now, "one (child) will serve, while the other can eat." "Still multiplayer, but less cost," Cheung said, while adding "the original item would have been better." Toys are a top category in the U.S. holiday shopping season, the biggest spending season of the year. Adobe Analytics projected an $8.1 billion online spend on toys last holiday season, marking a 5.8% increase from the previous year. Toy maker Basic Fun!, which sources most of its products from China, makes 40% of its annual sales in North America through Amazon, meaning the company can't risk removing merchandise from the ubiquitous e-commerce platform this holiday season, CEO Jay Foreman told Reuters. The company, which also sells to Walmart and Target, is offering retailers the option to remove batteries from the packages of its electronic toys, and plans to reduce or remove its toys' packaging in 2026, said Foreman. "The consumer will either pay more or get less value," Foreman said. Some companies, like Bratz and L.O.L. Surprise! dolls-maker MGA Entertainment, are moving supply chains out of China, - a costly endeavor - while others are reducing the number of items available on shelves this winter. Isaac Larian, the CEO of MGA Entertainment, one of the biggest U.S. privately-held toy companies, said it takes nine to 12 months to make cost-cutting changes to toys. MGA is planning to modify its products for later next year. "But we cannot take the magic out of the box," Larian said. "Too much cost-cutting, destroys the play value for the toy, and you turn off the kids." Historically, sector giant Mattel has invested in more "playable packaging" -- making the boxes part of the game itself -- to reduce costs. Hasbro, which sources roughly 50% of its U.S. toy and game volume from China, said on a Wednesday earnings call it "retooled and reimagined" its board games Candy Land and Operation, as part of a larger initiative to revamp its materials sourcing, manufacturing processes, designs and packaging to help with cost reductions amid tariffs. ECR4Kids - whose roughly 1,000 school and daycare supplies range from toys and games to bookshelves and play mats - also sources primarily from China, and makes "well over 50%" of its revenue from selling wholesale to Amazon, according to managing partner Lee Siegel. "We're very tethered to Amazon," Siegel told Reuters, explaining that he can't make substantive changes to the products he sells on the platform, including a $175 foam climbing set for toddlers. For some products, though, the company is reducing variations in color and model, and prioritizing more efficient packaging that uses every inch of space. These kinds of efficiency efforts were on Siegel's radar even before tariffs, he said. "But now, you really have no choice." Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10 hours ago
- Business
- Yahoo
Toy makers nix batteries, other materials to save costs during tariff war
By Arriana McLymore and Nicholas P. Brown NEW YORK (Reuters) -This holiday season, U.S. parents may have to make an extra pit stop - not for toys, but for the batteries that power them, as manufacturers pare down on frills and packaging to cut costs amid rising tariffs. Toy makers that serve retail giants like Walmart, Target and Amazon are reducing the number of accessories in toy kitchen sets, removing batteries from electronic playsets, simplifying doll makeup and reducing packaging, as a 30% blanket tariff currently imposed on Chinese imports puts a damper on their bottom lines. The duties imposed on China by U.S. President Donald Trump are particularly painful for companies like Hasbro and Mattel, as 80% of toys sold in the U.S. come from China, according to trade group The Toy Association. Educational toy maker Popular Playthings - whose China-made animal sets, trucks, and magnetic food sets can be bought on Amazon - is delaying and paring down a magnetic cake set it had planned to launch in June, CEO Jason Cheung said in an interview. The company is reducing the power of the magnet, using cheaper packaging, and removing one of two serving plates that were to come with the set -- all while upping the price from $29.99 to $34.99. "Originally it would come with two plates so two kids can have cake at the same time,' Cheung said. Now, "one (child) will serve, while the other can eat." "Still multiplayer, but less cost," Cheung said, while adding "the original item would have been better." Toys are a top category in the U.S. holiday shopping season, the biggest spending season of the year. Adobe Analytics projected an $8.1 billion online spend on toys last holiday season, marking a 5.8% increase from the previous year. Toy maker Basic Fun!, which sources most of its products from China, makes 40% of its annual sales in North America through Amazon, meaning the company can't risk removing merchandise from the ubiquitous e-commerce platform this holiday season, CEO Jay Foreman told Reuters. The company, which also sells to Walmart and Target, is offering retailers the option to remove batteries from the packages of its electronic toys, and plans to reduce or remove its toys' packaging in 2026, said Foreman. "The consumer will either pay more or get less value," Foreman said. Some companies, like Bratz and L.O.L. Surprise! dolls-maker MGA Entertainment, are moving supply chains out of China, - a costly endeavor - while others are reducing the number of items available on shelves this winter. Isaac Larian, the CEO of MGA Entertainment, one of the biggest U.S. privately-held toy companies, said it takes nine to 12 months to make cost-cutting changes to toys. MGA is planning to modify its products for later next year. "But we cannot take the magic out of the box," Larian said. "Too much cost-cutting, destroys the play value for the toy, and you turn off the kids." Historically, sector giant Mattel has invested in more "playable packaging" -- making the boxes part of the game itself -- to reduce costs. Hasbro, which sources roughly 50% of its U.S. toy and game volume from China, said on a Wednesday earnings call it "retooled and reimagined" its board games Candy Land and Operation, as part of a larger initiative to revamp its materials sourcing, manufacturing processes, designs and packaging to help with cost reductions amid tariffs. ECR4Kids - whose roughly 1,000 school and daycare supplies range from toys and games to bookshelves and play mats - also sources primarily from China, and makes "well over 50%" of its revenue from selling wholesale to Amazon, according to managing partner Lee Siegel. "We're very tethered to Amazon," Siegel told Reuters, explaining that he can't make substantive changes to the products he sells on the platform, including a $175 foam climbing set for toddlers. For some products, though, the company is reducing variations in color and model, and prioritizing more efficient packaging that uses every inch of space. These kinds of efficiency efforts were on Siegel's radar even before tariffs, he said. "But now, you really have no choice." Sign in to access your portfolio
