Toymaker Mattel says price rise has not hit demand
October 22, 2021 9:10 am
Higher prices in the run-up to Christmas have not dulled people’s appetites for toys, Barbie maker Mattel has said.
The toy giant raised prices after soaring shipping and raw materials costs.
The toymaker said its third-quarter sales grew 8% to $1.8bn (£1.1bn), and that it expected a strong Christmas.
Mattel is working hard to get toys on shelves amid supply disruptions, chief executive Ynon Kreiz told the BBC.
Businesses around the world have been dealing with big increases in shipping costs as Covid disrupts ports and containers back up.
The toy industry faces these challenges along with other businesses, Mr Kreiz said.
The rising cost of resin for Mattel’s plastic toys also meant price rises for consumers, Mr Kreiz said, although he declined to say how much Mattel toys had gone up by.
Mr Kreiz said that parents had prioritised spending on their children.
He said whether shipping and raw materials costs would continue to rise was “volatile and hard to predict”.
However, he said that if necessary higher toy prices and cost savings would “offset the impact of inflation on our business”.
Barbie dolls and Hot Wheels cars sold well in the third quarter, while there was 50%-growth in action figures for franchises including Jurassic World and Masters of the Universe.