Toymaker Mattel says price rise has not hit demand

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.

"We were impacted by global supply chain disruptions [in the third quarter]," he said. "But we worked through them."

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.

Last week The Entertainer, one of the UK's biggest toy retailers, warned that delays at UK ports could mean shortages this Christmas.

A container logjam at ports, including Felixstowe, and a shortage of HGV lorry drivers has sparked widespread concern among retailers about future stocks.

Mr Kreiz said Mattel is "doing what we can... to make sure we have presents on shelves".

The company has brought forward production, secured more freight containers, and got access to more ports to keep up supplies, he said.

However, he said: "I can't say we will meet all of the demand."

But he said: "We do expect a strong holiday season" and for parents and children to have "a happy holiday with lots of toys under trees this Christmas."

Rival Hasbro also said this summer that it aimed to avoid pandemic-related supply chain issues by increasing its shipping capabilities and speeding up the process of sourcing its products.

Mattel shares were up 6% in extended New York trading after the earnings announcement.

In recent years Mattel has made Barbie more diverse, with dolls based on different role models and professions.

This year, the firm launched a doll based on tennis superstar Naomi Osaka.

Mattel's products include Polly Pocket, Magic 8 balls, Disney Classics and Fisher-Price brands.

The firm began in 1945, as a collaboration between Ruth and Elliot Handler, and Harold "Matt" Matson.