Hasbro has seen a surge in demand for toys and games amid the coronavirus pandemic, the company’s CEO Brian Goldner has told CNBC.
The company boss has cited a ‘great demand’ in its products, underlining that “in fact, our supply chains are back up and running in China.” Shares of Hasbro closed up 12.5 per cent on Monday to $51.87 each following the announcement.
The CEO has revealed that demand for Hasbro’s games such as Monopoly and Operation, as well as Play-Doh, has been particularly strong, while the company is planning to launch new ‘stay at home’ products in response to the latest directives.
Hasbro’s stock was trading around $105 in February, but fell dramatically as investors responded to growing uncertainty around the economic consequences of the coronavirus. Hasbro is still down around 50 per cent from its early February levels.
In late February, Hasbro warned investors that the COVID-19 outbreak in China could cause ‘significant negative impact on our revenues, profitability and business.’
“Our first quarter has been quite good,” Goldner told CNBC. “We may miss some shipments as we’re catching up, as production is catching up. We believe that by April our production will be fully caught up.”
However, Goldner recognises that the situation around coronavirus remains fluid “as certain markets are closing while others are still open and robust.”
On the company’s stay at home product roll-out, Goldner added: “This week we’ll launch a programme called Bring Home the Fun, trying to give parents and caregivers the resources they need to keep kids occupied to help them get educated and keep creativity going on.”