Hasbro CEO and chairman Brian Goldner said Monday on CNBC’s “Squawk on the Street” that he expected robust demand for toys to continue even though the company was increasing prices.
Co-host Morgan Brennan asked, “As we enter what’s usually traditionally peak shipping season for the container ships right now ahead of the Christmas holiday and whatnot later this year, what are you seeing in terms of supply chain dynamics and how is that affecting you from a cost perspective?”
Goldner said, “We are adding carriers. We took a price increase that will go into effect fully for the fourth quarter. That is to cover our costs and to maintain our gross margin, and to ensure we achieve a 15% or better profit margin that we set as our target for the year. We are going to see those costs come in our business. On average, for example, ocean freight is on average four times more expensive than it was a years ago.”
Brennan asked, “So price increase meaning consumers will pay more for your toys and board games and the like?”
Goldner said, “Yes, there will be a price increase around the world. We are being very careful that price increase is just covering our costs. But given the high demand in many of these product categories and new innovation and new products, and many of them are associated with incredible content or content and commerce, we are seeing that the pricing is holding and that the consumer sees the value in our product.”
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