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Supply-chain issues are toying with everyone. Yesterday, Hasbro said in its earnings report that a whopping $100 million worth of orders went unfilled during Q3 of this year (though they were eventually completed in Q4).
The usual suspects: Capacity shortages and port congestions were the culprits. Shipping delays and rising freight costs also impacted operating profits within Hasbro’s consumer products segments, which fell 7% in Q3, per the company.
- Despite persisting supply-chain issues, the retailer showed off an 11% surge in Q3 revenue over last year, surpassing estimates from Wall Street.
- Higher revenues in the company’s entertainment division made up for the drop within consumer products, interim CEO Rich Stoddart, noted in a statement.
Looking ahead: While some companies have warned of delays, Hasbro reassured customers (and investors) that its production and manufacturing operations are in overdrive so its toys won’t be in short supply this holiday season.
- “Our teams continue to work around the clock to secure transport for our goods to meet the robust demand for Hasbro brands," Stoddart said.
- Mattel, which reported earnings last week, also projected confidence.—JS