Hasbro will still feel the impact from the liquidation of Toys R Us in the next quarter — but not beyond that, the company’s chairman and CEO, Brian Goldner, told CNBC on Monday after reporting its earnings.
But with Hasbro’s U.S. and European inventories down by double digits, the CEO said the only missing piece was Asia, where Toys R Us still has some hope of surviving.
“We’re waiting for some resolution to Toys R Us Asia as the two partners work out a new arrangement in China, and then we move forward without Toys R Us,” Goldner told Cramer.
In the meantime, Hasbro is working on broadening its retail footprint. The company will add 10,000 new sellers this year, bringing the total of new retailers in the last three years to 21,000, Goldner said.
“These are all kinds of new retailers that are out there. We’re shipping all kinds of new product based on a product development strategy that allows us to make great product at every price point for any consumer,” the CEO said. “That’s where we’re going this holiday season, is with a lot of new kinds of retailers as we continue to build the business and they want to capture the share that Toys R Us left behind.”
When it comes to selling on Amazon, which can run the risk of infringing on a company’s margins due to the e-commerce giant’s commitment to low prices, Hasbro isn’t seeing much weakness, Goldner said.
“Our cost to business with Amazon and other retailers is quite good and we’re very agnostic about how we grow,” the CEO said.
Shares of Hasbro closed down 3.09 percent on Monday, in part due to the impact of the company’s earnings report. The stock ended the trading day at $95.01 a share.
Disclosure: Cramer’s charitable trust owns shares of Amazon.
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