The playing time could be finished for one of the largest toy manufacturers if the prices remain.
Hasbro, which makes Nerf and Play-Doh dart cannons, expects buyers to reduce toy spending if President Donald Trump continues to impose 145% import prices from China and 10% in goods from other countries.
The decline could be as bad as in the great recession in the late 2000s, CEO Christian Cocks announced on Thursday during a call for the company’s results.
“We see the impact on consumer spending in the toys category in accordance with what happened with the 2008 and 2009 recession,” said cocks.
At the time, sales of the toy industry dropped “almost halfway,” he said.
Hasbro is the last company to warn of the potential harmful effects of Trump prices. Other brands and general public retailers have said that they would probably increase the prices that consumers pay to compensate for the cost of tasks.
This, with other fees of the prices, could push the United States into a recession, said certain economists.
For the moment, however, people continue to spend, some even more splashed to avoid price increases related to prices.
Although consumer confidence has fallen, for example, the data show that buyers have largely stuck to their spending plans. Even the first quarter of Hasbro gains were highlighted the expectations of analysts.
Not all Hasbro products will be uniformly struck by prices, said cocks. Although many of his toys are imported, he also makes board games like monopoly, many of which are made in the country in Massachusetts, he said.
The company also built a digital game company which led a large part of its increase in income during the first quarter.
businessinsider
