Hasbro Inc said on Tuesday that worldwide supply chain interruptions cost it approximately $100 million in lost toy orders in the third quarter, and it warned that sales might suffer even more during the important holiday shopping season.
Despite the fact that demand has increased over the last year, plant closures, a scarcity of container ships, and long port delays have stoked fears of a toy shortage during the holiday season.
The manufacturer of "Transformers" toys and Nerf blasters said it had delivered the majority of the $100 million in unfulfilled orders in the third quarter and was working "around the clock" to obtain transportation for its items.
According to Refinitiv IBES estimates, Hasbro expects sales to increase 13% to 16% in 2021, compared to analysts' expectations of a 14.2% increase.
"We have orders to support the high end of the revenue growth range," said Deborah Thomas, the company's Chief Financial Officer. "However, there are supply chain factors outside our control that may limit our ability to fully realize the upside."
Last week, competitor Mattel boosted its sales projection for 2021, citing a number of efforts, including bringing ahead production and contracting more ocean freight capacity, to ensure a good Christmas season.
In the third quarter, Hasbro's net revenue grew 11% to $1.97 billion.
Hasbro's net revenue increased 11% to $1.97 billion in the third quarter, which was in line with expectations.
The company earned $1.96 per share on an adjusted basis, compared to $1.69 per share expected.