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From ‘10-Q’ for 9/29/19, Tariff Mentions

NASDAQ:HAS   HASBRO INC
Looks like a great short

In addition, the segment recorded higher shipping and warehousing expenses as a result of implemented and proposed tariffs on U.S. products.


For the third quarter of 2019, the Company's selling, distribution and administration expenses increased to $275.4 million, or 17.5% of net revenues, from $272.4 million, or 17.4% of net revenues, for the third quarter of 2018. The increase in selling, distribution and administration expenses was driven by higher shipping and warehousing costs in the third quarter of 2019 as a result of implemented and proposed tariffs on its products in the U.S. which resulted in shifting orders from import to domestic delivery. In addition, the Company incurred higher selling and administrative costs in support of the Company’s Wizards of the Coast business. These increases were partially offset by lower spending due to the Company’s cost-reduction efforts in 2019.



Inventories decreased 4% to $589.1 million at September 29, 2019 from $610.9 million at September 30, 2018. Absent the $15.1 million impact of foreign currency translation, inventories would have decreased 1%. The decrease at September 29, 2019 reflects improved inventory management initiatives implemented across the Company's international markets offset by higher inventory levels held in the U.S as a result of the proposed U.S. tariffs.

The Company's actual results or experience may differ materially from those expected or anticipated in the forward-looking statements. Factors which may impact these forward-looking statements are included in our Annual Report. In furtherance, and not in limitation, of the more detailed discussion set forth in the Annual Report, specific factors that might cause such a difference include, but are not limited to:

concentration of manufacturing of the substantial majority of the Company's products by third party vendors in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of people and products into and out of China, the cost of producing products in China and the cost of exporting them to the Company's other markets or affecting the exchange rates for the Chinese Renminbi, including, without limitation, the potential application of tariffs or other trade restrictions to some or all of the goods manufactured for the Company in China and exported to other markets, which could significantly increase the price of the Company’s products and substantially harm sales if applied to any significant amount of the Company’s products;


the application of tariffs and other trade restrictions impacting the cost of producing our products and importing them into markets around the world for sale, which could significantly increase the price of the Company’s products and substantially harm sales, including, without limitation, through the elimination of direct import orders where our customers take ownership of products at ports near the source of supply, and the shift to domestic orders, which require us to ship the products to the market, import them and warehouse them, thus raising costs to us, delaying the time of sale, and resulting in the potential loss of some orders entirely due to lack of timely supply or other matters;

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