Hasbro warns of hit to vacation gross sales from provide chain points
Oct 26 (Reuters) – Hasbro Inc (HAS.O) mentioned on Tuesday world provide chain disruptions price it about $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 purchasing season.
While demand has surged over the past yr, manufacturing facility shutdowns, an absence of container ships and lengthy port delays have fueled fears of a scarcity of toys to place below Christmas bushes throughout the vacation season.
The maker of “Transformers” toys and Nerf blasters mentioned the vast majority of the $100 million in orders that weren’t crammed within the third quarter had been delivered, and it was working “around the clock” to safe transport for its items.
Hasbro mentioned it expects 2021 income to rise 13% to 16%, in contrast with analysts’ estimates of a 14.2% rise, in accordance with Refinitiv IBES estimates.
“We have orders to support the high end of the revenue growth range, but there are supply chain factors out of our control which could impact our ability to fully achieve the upside,” the corporate’s Chief Financial Officer Deborah Thomas mentioned.
Last week, rival Mattel Inc (MAT.O) 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. learn extra
Hasbro’s web income rose 11% to $1.97 billion within the third quarter ended Sept. 26, in step with estimates.
On an adjusted foundation, the corporate earned $1.96 per share, in contrast with estimates of $1.69 per share.