Hasbro CEO Brian Goldner told CNBC on Tuesday that sales are off to a strong start in the fourth quarter.
Toymaker's third quarter proved tough, missing top and bottom projections in its quarterly report that sent shares down nearly 17% on the session. The boss expressed optimism that shipments picked up "noteworthy" in September after two straight months of decline.
"We have a number of new products coming into the holiday season," he said in a "Mad Money" interview with Jim Cramer. "We said we believe we can grow in the fourth quarter, and as we move forward, we will get through this problem associated with the tariffs."
The US-China trade war has weighed heavily on Hasbro's shipping and storage costs, Sa Goldner said. Customs duties and the threat of several customs duties on toys imported from China are headwinds that the company has tried to avoid throughout the year. Hasbro is the parent of household toy brands Transformers, G.I. Joe and the Power Rangers, among others.
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"Going forward after the fourth quarter of 2019, our teams, as we always do, address these questions in real time," Goldner said. "We have a way of moving forward with our dealers where tariffs, whether adopted or not, will not affect our business, but in the short term it will have an impact."
Hasbro is dependent on a selection of new and soon to be released products for sale in the Christmas quarter. Goldner considered the debut of Disney's "Frozen 2" among them. He said that "we are seeing very strong growth" from the latest "Star Wars" movie, and that the Nerf Ultra launch is "off to a very good start." Play Doh, Transformers, Monopoly and Magic: The Gathering businesses are up to date, he added.
"We've come out of the gates strongly," Goldner said.
Hasbro is expected to record more than $ 1.5 billion in total sales and $ 1.51 in earnings per share in the December quarter, based on analysts' consensus. Wall Street expects $ 4.68 earnings per share of nearly $ 5 billion for the full year 2019, according to FactSet.