Hasbro's Tactic to Cut Chinese Dependence and Boost Margins

Published 1 days agoHAS

Hasbro's Tactic to Cut Chinese Dependence and Boost Margins

Hasbro CEO Chris Cocks recently outlined steps the company is taking to reduce reliance on Chinese manufacturing amid tariff challenges. The toy giant aims to lower the percentage of toys and games sourced from China for the U.S. market from 50% to under 40% within the next two years, as reported by Cash Review.

To support this shift, Hasbro is expanding its manufacturing to other countries, including Vietnam, India, and Indonesia, according to Quartz. This diversification strategy complements their strong licensing business, which remains a significant margin driver less affected by tariff issues. Hasbro also announced a new licensing partnership with Mattel to produce Play-Doh versions of Barbie dolls, offering a creative twist on their iconic products.

In addition to diversifying locations and collaborations, Hasbro is pursuing aggressive cost-cutting measures aimed at saving $600 million and reducing two-thirds of its product lineup, as mentioned by Reuters. Despite the logistical hurdles, the company forecasts a slight revenue increase for 2025 and expects an adjusted operating margin of 21-22%, up from 20.3% last year.

Share this article

Twitter Facebook LinkedIn

Recent Articles

TSMC Breaks $1 Trillion Market Cap, Leads Semiconductor Boom

TSMC Breaks $1 Trillion Market Cap, Leads Semiconductor Boom

25 minutes agoTSM

Taiwan Semiconductor Manufacturing Company (TSMC) has achieved a historic milestone as the first Asian company to exceed a $1 trillion market capitalization. This achievement came in June 2024 and was largely fueled by increasing demand for advanced semiconductors, underscoring TSMC's pivotal role in pushing the semiconductor industry into a $1 trillion era. TSMC's technological leadership is clear with its advanced 3-nanometer and 5nm process technologies, which together accounted for 69% of its wafer revenues in a recent quarter. The company is also experiencing rapid growth in the high-performance computing sector, particularly with AI chips now generating over half of TSMC's revenue. TSMC plans for its AI-related chip revenue to triple in the coming years, highlighting its strategic focus on AI. Strategic expansion is a key part of TSMC's growth, with planned new factories in the U.S., Germany, and Japan. In particular, a new Arizona facility is being developed with over $6 billion in support from the U.S. CHIPS Act. TSMC's dominance in the industry, paired with its strategic importance in the geopolitical landscape, especially amid U.S.-China tensions, positions it as a critical player in the ongoing evolution of the semiconductor industry. Reuters reported that the company's stock in the U.S. saw a slight change recently, trading at $179.28, with a modest movement of $6.63.

Johnson Outdoors Sees Strong Demand Across New Product Lines

Johnson Outdoors Sees Strong Demand Across New Product Lines

5 hours agoJOUT

Johnson Outdoors recently reported robust demand for its new product offerings, managing to thrive despite facing market challenges. The company saw impressive results in its fishing segment, where revenue shot up by 51.2% to reach $155.3 million, largely due to the high demand for popular Minn Kota and Humminbird products. The company's camping segment also performed well, with sales climbing 83.7% to $17.8 million and operating profits improving significantly to $4.3 million, compared to $828,000 previously. Meanwhile, the watercraft recreation segment experienced a 30.2% increase in sales, totaling $19.9 million, and saw operating profits nearly triple to $3.45 million. Additionally, the diving segment had a remarkable rebound with a 93% surge as travel restrictions eased. Johnson Outdoors has directed its focus on consumer-centric innovation and operational efficiencies to drive growth. The company has successfully implemented cost-saving measures, enhancing its gross margin by about 2 percentage points in fiscal year 2024. Furthermore, it continues to push forward with key product launches in the fishing and watercraft segments, including the Minn Kota QUEST™ Series and the One-Boat Network® App. Reuters highlighted these efforts as part of the company's strategy to meet consumer needs and mitigate market challenges.

Select Medical Projects Revenue Surge with New Rehabilitation Facilities

Select Medical Projects Revenue Surge with New Rehabilitation Facilities

Select Medical Corporation has set an ambitious revenue target of between $5.3 billion and $5.5 billion for 2025, driven by its aggressive expansion into inpatient rehabilitation services. A major part of this growth strategy is the opening of several new facilities across the United States, such as a sizable hospital in Temple, Texas, scheduled for late Q1 2025. This facility alone will add over 40 beds, boosting access to rehabilitation care in Central Texas. Key developments in support of this expansion include a planned joint venture with CoxHealth to establish a new inpatient rehabilitation hospital in Southwest Missouri, set to open in Q4 2025, pending approval. Additionally, a 50-bed facility in Oklahoma City is poised to commence operations in December 2024, in collaboration with SSM Health. Select Medical also aims to expand in Pennsylvania with a new 20-bed facility expected in Q2 2025, in partnership with UPMC. These moves are part of Select Medical's broader strategy to add a total of 569 beds through 2026, aiming to significantly boost revenue and improve adjusted EBITDA. Meanwhile, according to recent stock market data, Select Medical Holdings Corporation is valued at $14.26, experiencing a slight drop of $3.98 or 0.22%. The latest trading figures report an intraday volume of 4,344,695 and price fluctuations between a high of $18.20 and a low of $14.04, as noted by Reuters.

Mohawk Industries Faces $50 Million Tariff Impact, Adjusts Strategy

Mohawk Industries Faces $50 Million Tariff Impact, Adjusts Strategy

Mohawk Industries has provided an update on its financial performance and projections, revealing a significant $50 million hit from tariffs that will affect its financial results. Amid these challenges, the company also shared its second-quarter earnings figures. Mohawk reported net earnings of $101 million with diluted earnings per share (EPS) of $1.58. When adjusted for specific charges, net earnings were $176 million and EPS was $2.76. Looking ahead, Mohawk has offered guidance for the third quarter, projecting an EPS range of $2.58 to $2.68, excluding any one-time charges. Additionally, the company is undertaking restructuring efforts aimed at saving $100 million annually, though these will incur a total cost of about $130 million. Moves include idling some operations and consolidating warehouses to streamline efforts and cut costs as Reuters noted recently. In response to the challenging U.S. flooring market, marked by lower demand and excess inventory due to pre-tariff purchases, Mohawk Industries is focusing on increasing sales volume and reducing operating costs. These strategic shifts are part of the company’s efforts to mitigate tariff impacts and adapt to changing market dynamics.