Mattel shares surged 14% in premarket trading on Wednesday after the Hot Wheels maker provided an upbeat annual profit forecast and hinted at stabilizing toy demand, despite tariff-related uncertainty.

Mattel Inc. is considering increasing the price of its Barbie and Hot Wheels toys to offset the cost of President Donald Trump’s tariffs. The El Segundo, California-based toymaker will first seek to make its supply chain more efficient or relocate some production before deciding whether to pass on the added expense to consumers,

Shares of Mattel Inc. jumped after hours on Tuesday after the toy maker forecast an adjusted per-share profit for this year that came in above analysts’ expectations, as it takes actions — including potential changes to its prices — to offset a fresh round of tariffs from President Donald Trump.