Hasbro says tariffs are to blame for earnings miss

Hasbro Inc. stock plummeted 16.1% in Tuesday trading, headed to the biggest decline since December 2000, after earnings that missed expectations due to the impact of President Trump’s tariffs on imports from China.

In a statement, Chief Financial Officer Deborah Thomas said a “dynamic trade environment” was having an impact. Chief Executive Brian Goldner elaborated on the earnings call, saying it was “a very choppy environment, where retailer order patterns have changed in response to potential tariffs.” “To meet demand, we added air freight and shifted warehousing at an incremental expense to ensure shelves were stocked as the promotion builds for these initiatives,” Goldner said.

Goldner sounded an optimistic note, saying that the goal of sourcing 50% for the U.S. out of China by year-end 2020 is on track, there are new product lines coming, and there’s “strong consumer demand” for the merchandise to support the aforementioned launches.“[T]he planned Dec. 15 tariffs will curtail direct import shipments by retailers, as they want product arriving on or after the 15 to be imported by Hasbro, and demand fulfilled in the U.S.,” Goldner said.

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