As Q2 for 2021 comes to a close, Hasbro's financial conference call has gone out. It contains some good news for ongoing brands as well as things to look forward to, but also contains some worrying potential news for product availability going forward.
The main focus of the report comes from Hasbro Chairman and CEO Brian Goldnar. He mentions that overall demand for product has remained consistent and that overall revenue has increased by 54% since last year. The biggest earner mentioned was the massively popular card game Magic: The Gathering, citing record sales of the Strixhaven and Modern Horizons 2 sets.
In addition, the report mentions the investment made in movies and television, citing the release of the Snake Eyes: GI Joe Origins movie, and a re-launch of My Little Pony coming to Netflix in September. As for their push into video games, Goldnar did mention the negative critical reception and player response to Dungeons and Dragons: Dark Alliance, but stated a dedication to improving and refining the title through ongoing updates and downloadable content.
But tucked away in the report is some information that may lead to some concern for consumers going forward. While discussing adjusting their operational margin level in the report, Goldnar mentions that changes were being made to mitigate an increase in costs. The report states, " 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. 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." In simplified terms, this means that the wholesale price for physical products by Hasbro which include everything from Magic cards to Dungeons and Dragons rulebooks will be increasing in order to balance out the ever-increasing shipping costs of sea freight around the world.
This doesn't necessarily mean that ongoing products will be getting more expensive.This just means that retail supply chains will be paying a bit more to get Hasbro's products on their shelves. As for whether or not those retail stores increase those prices themselves to mitigate that cost will be something that will apply on a case by case basis.
Considering that the cost of shipping has almost quadrupled in a very short amount of time, It makes perfect sense for Hasbro to do this from a business perspective. Just don't be surprised if you have to pay a little extra for their stuff at your local game store going forward.
