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The Coronavirus May Impact Hasbro And Star Wars Toy Production

The global coronavirus outbreak is already impacting stock markets all over the world. The tourism industry is suffering greatly. Today it was announced that the new James Bond movie will be delayed because of the virus and will now open in November to avoid potential losses at the box office. And if the pandemic is not over soon it could have a real impact on toy production as well. Actually, Hasbro already adressed the coronavirus issue a few weeks ago in their earnings call. So what can we expect? Click through for more!


Nasty little thing

CNN Business posted an article on their website today that talks about a possible derailment of “Baby Yoda” toy production. According to the article Hasbro confirmed late last week that their supply chains are being disrupted by the coronavirus outbreak.

However, as of now, production of Baby Yoda toys have not been impacted yet, but if the situation is not resolved by June, we may face shortages.

The expert CNN Business spoke to believes about 5-10% fewer Baby Yoda toys than planned can be made because of the quarantine measures in China.

Hasbro warned in their recent SEC filing that the coronavirus may seriously impact toy production. The issue is that many of the raw material needed to make the toys are only available in China, and there have been some issues to obtain the quantities needed. On top of that Hasbro informed investors that some of their factories in China are closed and workers can’t assemble any toys.

There’s certainly no need to panic, it’s not the black death, but it seems the coronavirus, on top of being a health risk, could also lead to fewer toys being available. What that means for pre-orders and possible cancelations of pre-orders later down the road due to insufficient stock cannot be determined yet. If the crisis will be over soon production should return to normal. The infection rate in China seems to be slowing down, so there is hope everything will return to normal in a few weeks.

Read more here:
CNN Business article about Hasbro and the coronavirus
Hasbro SEC Filing
The Guardian article about how the outbreak may impact the toy industry

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