Hasbro warns of hit to holiday sales from supply chain issues

Hasbro Inc said on Tuesday global supply chain disruptions cost it about US$100 million in lost toy orders in the third quarter, and the company warned of a further hit to sales during the crucial holiday shopping season.

While demand has surged over the last year, factory shutdowns, a lack of container ships and long port delays have fuelled fears of a shortage of toys to put under Christmas trees during the holiday season.

The maker of "Transformers" toys and Nerf blasters said the majority of the US$100 million in orders that were not filled in the third quarter had been delivered, and it was working "around the clock" to secure transport for its goods.

Hasbro said it expects 2021 revenue to rise 13 per cent to 16 per cent, compared with analysts estimates of a 14.2 per cent rise, according to 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 company s Chief Financial Officer Deborah Thomas said.

Last week, rival Mattel Inc raised its 2021 sales forecast, saying it was employing a number of strategies including pulling forward production and contracting more ocean freight capacity to ring in a strong holiday season.

Hasbro s net revenue rose 11 per cent to US$1.97 billion in the third quarter ended Sept. 26, in line with estimates.
Read more on CTVnews
News Topics :
Similar Articles :
Hasbro Inc. fell the most since July after reporting third quarter sales that disappointed investors in contrast with rival Mattel Inc.’s results last week. Hasbro, the largest U.S. toymaker, said Monday...
Top Stories
SASKATOON Because of supply chain woes, retailers are warning Christmas shoppers to buy earlier than usual or theyll face empty shelves for popular items this holiday season. Lori...
TORONTO Spin Master Corp. raised its sales guidance for the year after handily beating expectations with third quarter profits soaring 56 per cent as revenues hit a record high. The...
Best Buy Co. shares fell after the U.S. electronics retailer warned that demand could slow during the critical holiday season after Americans started shopping early amid the pandemic. The quicker...
Canadian toymaker Spin Master Corp. has twisted its way past supply chain problems to deliver goods to retailers ahead of the holidays, the company’s most lucrative sales period of the...