Hasbro Thinks Christmas in July With Increased Production and Higher Prices
Hasbro is attempting to beat pandemic-related delays by ramping up production in July and increasing prices for the upcoming holiday season. The global play and entertainment company hopes to cash in on the demand for Nerf Blasters and Marvel action figures, reported Reuters.
“We successfully established price increases that go into effect during the third quarter and provide an offset to the rising input and freight costs in the business,” explained Brian Goldner, Hasbro chairman and CEO, in the company’s second-quarter earnings call Monday. “These supply chain pressures are meaningful, but given the strength in our business, the actions we have taken combined with our global footprint, we continue to believe we can meet our full-year targets.”
Hasbro beat quarterly results expectations, noted Reuters, driving shares up 10% to their highest level in 17 months.
Worldwide, companies across industries have experienced shipping delays and port congestion as a result of the pandemic, Reuters reported, forcing many companies to find alternative ways to get products to stores faster. The has led to higher transportation costs for Hasbro, pushing up the price of toys for the third and fourth quarters.
Container ship operators don’t expect things to get much better in the near term, The Wall Street Journal reported. Retailers started booking cargo space for holiday merchandise in June, three months before the start of the traditional peak shipping season.
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