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Company beats holiday quarter sales estimates

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Warns of potential price increases as a response to tariffs

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Doll sales slump worldwide by 4% in the quarter

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Targets $600 million of share repurchases in 2025

Feb 4 (Reuters) - Toymaker Mattel on Tuesday forecast full-year profit above

Wall Street expectations after beating holiday quarter sales estimates, helped by stable demand

for its action figures and Hot Wheels vehicles.

The company expects 2025 adjusted profit per share in the range of $1.66 to $1.72, above

analysts' average estimate of $1.58, according to data compiled by LSEG.

The forecast included the anticipated impact of President Donald Trump's sweeping tariffs on

China, Mexico and Canada announced on Saturday, which Mattel ( MAT ) aims to mitigate through supply

chain optimization and potential price increases on its toys.

Levies on Mexico and Canada were paused for a month while tariffs were being imposed on

China, which retaliated with levies of its own.

"Our exposure in the U.S. to China sourcing is about 20%," Mattel ( MAT ) CEO Ynon Kreiz told

Reuters.

Currently, less than 40% of Mattel's ( MAT ) global product is manufactured in China, compared to an

industry average of about 80%, analysts have noted.

Toy manufacturers have worked to get ahead of the incoming tariffs and reduce their exposure

to China by shifting production out of the region and reviewing product lines.

Through 2024, the Barbie parent undertook stringent cost-control measures to protect its

margins from sluggish demand through 2024. Those efforts included streamlining its supply chain

and exiting underperforming products.

On Tuesday, the company said it was tracking ahead of its target to achieve $200 million in

cost savings by the end of 2026 and plans to repurchase $600 million of shares through 2025.

Mattel ( MAT ) expects a net sales growth of 2% to 3% for 2025, slightly below analysts'

expectations of a 2.7% rise to $5.51 billion.

Weak Barbie sales and a shorter holiday season in December kept sales in check, with

worldwide gross billings for dolls were down 4% in the fourth quarter ended Dec. 31.

Net sales rose 2% to $1.65 billion. Analysts on average had expected flat sales of $1.63

billion.