Connect with us


Hasbro Blames Revenue Drop on Toys ‘R’ Us Liquidation



Hasbro Inc., the multinational toy and board game company, heavily missed expectations for profit and revenue in its first quarter reports to Wall Street, released on Monday April 23rd. The toymaker blamed its woes on the liquidation of Toys ‘R’ Us retailers in the U.S. and U.K., and trouble selling off inventory predominantly in Europe.

As reported by the NY Post, Hasbro, the largest toymaker in the world, reported close to $100 million in revenue shortcomings, in the first quarter ended April 1. Analysts were projecting revenue of $814 million but the company missed those estimates by 16 percent, reporting $716.3 million in revenue. Adjusted Net Earnings were reported at 10 cents per share, missing projections of 33 cents a share. This is Hasbro’s first miss in over two years. The company posted a net loss of $112.5 million, or 90 cents per share, compared with a profit of $68.6 million, for the same time last year. Following the news, the company’s share prices plummeted 8 percent to their lowest level since December 2016 at $76.01.

Hasbro said that despite the disappointing first quarter, it is on track to meet its goal of generating $600 million to $700 million in operating cash flow this year. “Our underlying financial strength is sound, and despite the near-term challenges associated with a major customer liquidation, Hasbro is positioned to manage a challenging 2018 and drive growth in 2019 and beyond,” said Deborah Thomas, Hasbro’s chief financial officer. “The quarter’s revenue and profits were negatively impacted by lower revenues and higher expenses associated with events that do not reflect the health of our underlying business.” DA Davidson analyst Linda Bolton Weiser agreed saying, “It sounds like the worst impact was in the first quarter,”

“We are working to put the near-term disruption from Toys‘R’ Us behind us,” said Hasbro Chief Executive Brian Goldner. “Our global retailers view this as an opportunity in a key consumer category and are partnering with Hasbro to develop growth plans for our brands.”

On Thursday Mattel is also due to release its first quarter reports. The rivaling toy manufacturer is also expected to report weak earnings as a result of the Toys ‘R’ Us bankruptcy, and has already experienced drops in the share price.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement --


Daily Newsletter

Get all the breaking news delivered right to your inbox as it happens

Sign Up Now!


At Your Doorstep

No more hassles running to the newsstand, as each week for a month, you can now sit back, relax and enjoy the Jewish Voice in the comfort of your own home!