The Mattel sign is pictured at the Nuremberg International Toy Fair, Jan. 29, 2014, in Nuremberg, Germany.
Mattel Inc cut its annual profit forecast on Tuesday and said it would ramp up promotions heading into the busy holiday season, as price hikes discourage inflation-hit Americans from spending on its Barbie dolls and action figures.
Mattel, meanwhile, expects demand to accelerate during the crucial holiday shopping season, but said it would conduct more promotions to remain competitive.
Mattel reduced its 2022 adjusted profit forecast to between $1.32 and $1.42 per share from $1.42 to $1.48 earlier, but its raised prices helped the toymaker post adjusted gross margin of 48.3% in the third quarter, compared with last year's 47.8%.
The Fisher-Price toys maker reiterated its forecast for full-year sales.