Hasbro, one of the biggest toymaker in the US, plans to move more of its production outside of China due to the latest tariffs.
Brian Goldner, the CEO of Hasbro, during an earnings conference call Monday, said the company will move more production outside of China as a result of potential tariffs.
Most of the Hasbro's third-party vendors and factories are located in China, however, the company said it has started expanding production outside of China and will "continue to diversify our third-party factory base globally."
Earlier this month, the U.S. imposed 25 percent tariffs on $34 billion of Chinese imports. Beijing retaliated by imposing similar duties on U.S. goods. Trump later threatened to impose tariffs on all $500 billion in imports from China.
Meanwhile, Hasbro reported a profit for the second quarter that trumped Wall Street estimates, as revenues also beat expectations, driven largely by strong demand for Marvel toys as the toymaker successfully moves past last year's Toys 'R' Us bankruptcy. Shares of the company rose up as much as 14 percent.
"We don't expect to recapture all of the loss (of) revenue in 2018, but by 2019, we should have moved beyond Toys 'R' Us," Goldner said.
Hasbro has partnered with big media producers like Walt Disney to produce toys based on popular movie franchises like Star Wars and Marvel's superheroes movies. This year's blockbuster success of Black Panther and Avengers: Infinity War has helped Hasbro in a big way.
Hasbro's second-quarter profit was $60.30 million or $0.48 per share, compared with last year's $67.72 million or $0.53 per share. Analysts had expected earnings of $0.30 per share.
The company's revenue for the quarter fell 7.0% to $904.46 million from $972.51 million last year. However, topped Wall Street estimates of $833.12 million.
HAS is currently trading at $107.43, up $13.50 or 14.37%, on the Nasdaq.
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