Amazon, Target as well as Walmart have become increasingly more important for Hasbro as well as its competitors, as have alternative retailers like drug as well as grocery stores. different retailers such as Kohl’s, J.C. Penney as well as Best Buy have also cleared more shelf space for toys.
Hasbro said of which demand for toys as well as games was high late within the third quarter.
“We were unable to meet all of the demand within the quarter,” Goldner said. “As a result, approximately $50 million of U.S. third-quarter orders shipped within the first week of the fourth quarter.”
Hasbro expects to add a warehouse within the Midwest to help meet This specific demand as well as shorten delivery time. Chief Financial Officer Deb Thomas said the company has seen higher shipping costs within the U.S. because of fresh trucking regulations as well as a shortage of drivers.
Hasbro has relied heavily on Toys R Us for sales. Target became the second-largest seller of Hasbro goods in 2016, accounting for 14 percent of its sales within the U.S. as well as Canada.
Toys R Us, which accounted for 15 to 20 percent of U.S. toy sales last year, shuttered its last U.S. location on June 29. Hasbro also noted of which the recent bankruptcy of Sears had no impact on its business because of which of which accounted for less than 1 percent of revenue last year.
One bright spot for Hasbro can be of which 83 percent of customers who bought a toy during the liquidation of Toys R Us said they had already given of which away or might be gifting of which before the end of September, according to a report by NPD Group.
of which leaves only 17 percent who said they might be giving the toy to someone during the fourth quarter. NPD’s Juli Lennett noted of which birthdays as well as “no special occasion” were listed as the top two reasons for purchasing these liquidation toys, with Christmas coming in third.
“So as we go through these transitions our underlying business can be quite strong. Our brands are not bad. Consumers are very excited about what we’re doing,” Goldner said. “of which’s just of which again we’ve got to get through the disruption of the Toys R Us business as well as as, I mentioned, Toys R Us was largest for us in Q3 last year, followed by Q4.”
Programming Note: For more on Hasbro, watch CEO Brian Goldner’s interview on “Mad Money” tonight at 6 p.m. ET.
WATCH: Hasbro misses on top as well as bottom lines