Hasbro warns of hit to holiday sales from supply chain issues

Hasbro Inc stated on Tuesday international provide chain disruptions price it about US$100 million in misplaced toy orders within the third quarter, and the corporate warned of an additional hit to gross sales throughout the essential vacation buying season.

Whereas demand has surged over the past yr, manufacturing unit shutdowns, an absence of container ships and lengthy port delays have fuelled fears of a scarcity of toys to place beneath Christmas bushes throughout the vacation season.

The maker of “Transformers” toys and Nerf blasters stated the vast majority of the US$100 million in orders that weren’t stuffed within the third quarter had been delivered, and it was working “across the clock” to safe transport for its items.

Hasbro stated it expects 2021 income to rise 13 per cent to 16 per cent, in contrast with analysts’ estimates of a 14.2 per cent rise, based on Refinitiv IBES estimates.

“We’ve got orders to assist the excessive finish of the income development vary, however there are provide chain components out of our management which may influence our capability to totally obtain the upside,” the corporate’s Chief Monetary Officer Deborah Thomas stated.

Final week, rival Mattel Inc raised its 2021 gross sales forecast, saying it was using quite a few methods together with pulling ahead manufacturing and contracting extra ocean freight capability to ring in a robust vacation season.

Hasbro’s web income rose 11 per cent to US$1.97 billion within the third quarter ended Sept. 26, according to estimates.

On an adjusted foundation, the corporate earned US$1.96 per share, in contrast with estimates of US$1.69 per share.

(Reporting by Uday Sampath in Bengaluru; Modifying by Shinjini Ganguli and Shounak Dasgupta)

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