- Hasbro CEO Brian Goldner said price increases will be going into effect during the fourth quarter.
- The CEO said ocean freight costs are nearly four times higher than a year ago.
- The company reported earnings on Monday that beat expectations as revenue rose 54%.
- Shares were up nearly 12% after the earnings report.
Hasbro CEO and chairman Brian Goldner expects robust demand for toys to continue even though the company is hiking prices to offset increased shipping and other costs.
"For example, on average, ocean freight is about four times more expensive than it was a year ago," Goldner said in an interview on CNBC's "Squawk on the Street" Monday.
Hasbro expects worldwide price increase will take full effect during the fourth-quarter as the company experiences higher costs.
After reporting earnings Monday, the toymaker's stock hit a 52-week high of $103.54. Shares were recently up nearly 12%, bringing its year-to-date gains to nearly 9%.
Hasbro reported better-than-expected second-quarter results with a 54% jump in quarterly revenue. The company said its loss narrowed to $22.9 million, or 17 cents a share, on revenue of $1.32 billion. After adjustments, Hasbro earned $1.05 per share, topping analysts' estimates.
Hasbro said it is continuing to see strong demand for its Dungeons & Dragons and Magic: The Gathering games. Goldner anticipates that consumers will remain interested in these and other products and sales won't be hurt by the higher prices it is putting in place.
"That is to cover our costs and to maintain our gross margin and to ensure we can achieve a 15% or better operating profit margin that we set as our target for the year," Goldner said.
Hasbro said it expects revenue to grow at a double-digit pace this year and position it for profitable growth this year.