The maker of Barbie is plunging after announcing its earnings will be weaker than expected this year
- Mattel on Friday said that its first-quarter gross revenue will be lower year-over-year.
- The toymaker also posted disappointing guidance for its full-year adjusted EBITDA.
- The company said in October that its business and the whole toy industry suffered from President Donald Trump's tariffs against China.
- Watch Mattel trade live.
Mattel, the second-largest toymaker behind Hasbro, said Friday that its earnings will be weaker than investors had expected this year. Shares dropped 16.97% to $14.02 apiece, booking their biggest intraday loss since 2017.
The company said in an investor presentation that it expects its full-year adjusted EBITDA in the range of $350 million to $400 million. Although the measure may not be comparable to analysts' estimates for a higher amount, shares plunged following the news and trading was halted at 3:04 pm ET, according to Bloomberg.The company also said that its first-quarter gross revenue will be lower year-over-year.
Late last year, the Barbie maker said that its business and the whole toy industry were hurt by President Donald Trump's tariffs against China.
"This is something that will impact the entire toy industry," Ynon Kreiz, CEO of Mattel told investors in October.
"The Toy Industry Association of America reported recently that 85% of all toys sold in the US are imported from China. In our case, it is actually less than two-thirds, so we are somewhat in a better position."
Mattel is up 44% so far this year.