Hasbro is a company that makes toys and games for children, as well as other products. The company’s CEO Brian Goldner has said that they will be working to increase the number of toys they ship in order to avoid the shipping constraints that have been seen with some of their competitors.
Hasbro stock up on toys to work around shipping constraints.
According to officials, Hasbro Inc. is sourcing more of its toys early from different nations since it expects port congestion and ocean capacity limitations in the second part of the year.
On a Monday conference call, finance head Deborah Thomas stated that the manufacturer of Transformers, My Little Pony, Play-Doh, and other toys is trying to avoid bottlenecks in shipping processes so that goods reach in time for the Christmas season. To speed up delivery, Hasbro is increasing the number of container lines it works with and using more ports, she said.
Ms. Thomas said, “We’re also trying to guarantee product availability throughout the Christmas season.” “We may see some changes in delivery schedules and revenue timing.”
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As the economy reopens from Covid-19 lockdowns and more consumers return to stores, the Pawtucket, R.I.-based company is among the many U.S. retailers and manufacturers restocking inventories.
Hasbro Chief Executive Brian Goldner said, “We’re out to find stuff and bring it in through any number of different carriers.” “The team was able to secure more ports, and we now have more shipping lanes than we did previously.”
Hasbro announced price increases in April to offset rising freight and input costs. The price hikes will take effect in the third quarter, according to executives. According to Ms. Thomas, ocean freight prices are expected to more than quadruple this year compared to last year.
Faced with rising costs for materials, transportation, and labor, other businesses are raising prices on everything from metal fasteners to Oreo cookies, helping to drive inflation to levels not seen in the United States in more than a decade.
Hasbro reported a 54 percent increase in second-quarter revenue to $1.32 billion on Monday. The company reported a net loss of $22.9 million, down from $33.9 million the year before.
A charge of $101.8 million related to the sale of eOne Music assets dragged down this year’s earnings. The toymaker bought the music business as part of its $4 billion purchase of Entertainment One Ltd., which owns the “Peppa Pig” brand.
Hasbro’s stock closed at $103.72 on Monday, up more than 12%.
Hasbro’s Wizards of the Coast and digital-gaming segment, which includes the brands “Magic: The Gathering” and “Dungeons & Dragons,” saw revenue more than double. The consumer-products segment, which includes brands like Nerf and the Marvel portfolio, saw a 33 percent increase in revenue. The entertainment segment, which includes shows like “Peppa Pig,” “My Little Pony,” and “PJ Masks,” saw a 47 percent increase in revenue.
According to Mr. Goldner, the company expects double-digit revenue growth for the entire year.
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Dave Sebastian can be reached at [email protected].
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