Hasbro's shift to Ohio-made dice for Monopoly and Scrabble added 15% to per-game costs, eating into margins. The company expects quality to improve. The next earnings call in late October will reveal whether the move holds.
HASBRO, INC. currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
Hasbro's attempt to make Monopoly and Scrabble dice in the United States has added to costs, not cut them.
The toy company shifted production of dice for its classic board games to a factory in Ohio in 2023, part of a broader push to shorten supply chains. The U.S.-made dice are less consistent in weight and finish than the Chinese-made ones they replaced, according to people familiar with the matter. That has forced Hasbro to scrap more units and spend extra on quality checks.
The higher rejection rate has added roughly 15% to the per-game cost of dice, the people said. Hasbro has not passed that cost on to retailers, instead absorbing it in its margins. The company's games segment, which includes Monopoly and Magic: The Gathering, reported a 3% decline in operating profit in the most recent quarter.
The Ohio factory, run by a third-party manufacturer, was meant to reduce Hasbro's exposure to shipping delays and tariff risks. The outcome shows the difficulty of replicating the precision of Asian supply chains for low-margin components. A Hasbro spokesperson said the company is working with the manufacturer to improve quality and expects the rejection rate to fall over time.
For investors, the key question is whether Hasbro will keep dice production in Ohio or move it back to China. The next quarterly earnings call, scheduled for late October, is the earliest chance for an update.
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