Toy maker Mattel has warned that the appreciating Chinese yuan and rising raw material costs will lead to the cost of its famous Barbie dolls rising from early next year.
Mattel, which has been forced to recall thousands of toys in recent months because of safety fears, told The Daily Telegraph that prices would be reviewed in January but that increases were inevitable and would vary by country.
Mattel’s net profit fell to US$236.8 million (£116 million) in the third quarter following a US$40 million (£19.6 million) hit incurred by the recalls, which ranged from concerns about excessive lead paint in toys to defective designs.
Mattel chairman and chief executive Bob Eckert said the forthcoming Christmas trading period “would be the safest ever” for consumers of Mattel toys. He said a new three-point product testing plan was fully implemented.
The news comes as variety retailer Woolworths reported that it may run out of some of this year’s must-have toys before Christmas, because of delays in shipments from China as a result of stringent checks.
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