Hasbro said that Chinese factories, which account for about 55% of the company’s production, are now operating at normal levels and are trying to meet demand for the holidays. Toy production at facilities in the United States, Ireland and India is also increasing.
Still, Hasbro has been plagued by delays in releasing great Hollywood movies. Disney-owned Marvel studio originally planned to release “Black Widow” this May. But that movie has been delayed until November as a result of the coronavirus outbreak.
Hasbro said toy revenue linked to so-called associated brands fell 35% in the quarter.
However, Mattel reported sales that exceeded expectations last week. And both Mattel and Hasbro remain hopeful that demand for toys will be strong during the key holiday shopping season, and that manufacturers will be able to produce enough new products in time to hit stores this fall.
Goldner added that the year-round impact of the coronavirus “remains unpredictable,” but “as stores open and we begin to return to production for entertainment, we expect the environment to improve in the third quarter and prepare us for run a good holiday season. “
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