Game and toy maker Hasbro announced that it's going to raise prices as holiday shopping binge approaches due to commodity price rise, according to Hasbro CEO Brian Goldner, who shared the news during the company's second quarter earnings call on Monday.
"We successfully established price increases that go into effect during the third quarter and provide an offset to the rising input and freight costs in the business," Goldner said. "These supply chain pressures are meaningful. But given the strength in our business, the actions we have taken, combined with our global footprint, we continue to believe we can meet our full-year targets."
CFO Deb Thomas also explained the price raise during the call, "As Brian mentioned, we're implementing price increases during the third quarter that should be fully realized by the fourth quarter. We expect this to offset the rising cost of freight and commodities we continue to see across the business."
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"We're also working to ensure product availability during the holiday season," she added, "We may experience some shifts in delivery dates and timing of revenue, but we're leveraging our global footprint and scale to meet demand."
Hasbro didn't reveal exactly how much it would raise prices, but according to Goldner's response to an analyst's question, 10% raise would be "a bit high".
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Goldner also said that he believes the holiday season "should be incredibly good, and very, very solid with great new innovations coming" from various Hasbro brands.
The revenue call also reported that Hasbro's revenue was better-than-expected with a 54% jump, which was boosted by the rising demand for its tabletop games, and its TV production business, which benefitted from easing restrictions and vaccine rollouts.
According to Refinitiv IBES data, overall net revenue surged 54% to $1.32 billion in the three months ended June 27, surpassing analysts' average estimate of $1.16 billion.
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