Mattel stock increases on positive outlook despite tariff concerns

Mattel shares soared as much as 18% in early trade Wednesday as the Hot Wheels maker offered an upbeat annual earnings estimate and hinted to steady toy demand, despite tariff concerns.

The company also stated that it intended to hike product pricing to mitigate the potential impact of recent tariffs imposed by US President Donald Trump on imports from China, Canada, and Mexico. While taxes on Canada and Mexico were deferred for a month, duties on Chinese imports have already gone into effect.

«Along with the strong fourth-quarter results, Mattel’s biggest surprise was the forecast for earnings growth despite US tariffs,» UBS analyst Arpine Kocharyan wrote in a note to investors.

Toy manufacturers have taken proactive actions to decrease their exposure to China, such as shifting production out of the country, revising product lines, and stockpiling inventory ahead of time.