Hasbro, Inc. (NASDAQ: HAS)
Shares in Hasbro, Inc. were down $5.54, or 5.65% to $92.50 before the opening bell Monday after the company announced a drop in earnings and revenue for its fiscal third quarter.
The Rhode Island-based toymaker blamed the slide to strong dollar and the collapse of Toys ‘R’ Us, which was one of its biggest customers for many years.
Hasbro said it had net income of $263.9 million, or $2.06 per share during the quarter. This compares to net income of $265.6 million, or $2.09 per share in the third quarter of the previous year. Adjusted for non-recurring items, earnings were $1.93 per share for the quarter.
Sales came in at $1.57 billion, compared with $1.79 billion in the same period a year-ago. Analysts had called for adjusted earnings of $2.23 per share and sales of $1.71 billion, according to figures compiled by Refinitiv. Partner brands segment recorded a revenue drop of 37%, while was gaming revenue was about flat.
Hasbro CEO Comments
Brian Goldner, chairman and chief executive officer of Hasbro commented, “The global Hasbro team is effectively managing our business forward through a very disruptive year. The lost Toys “R” Us revenues are impacting many markets around the world, notably the U.S., Europe, Australia and Asia. The volume of product liquidated in the second quarter had a near-term impact on the third quarter sell through and shipments.”
“We are successfully managing retail inventory and it is down significantly in the U.S. and in Europe, where we are aggressively working to clear excess inventory by year end. A growing array of retailers are now ramping new programs to take share this holiday season and we are well positioned to meet their demand.”
Hasbro, Inc. Company Profile
Hasbro, Inc. engages in the provision of children and family leisure time products and services with a portfolio of brands and entertainment properties. The company operates under the brand names such as Littlest Pet Shop; Magic: The Gathering; Monopoly; My Little Pony; Nerf; Play-Doh; and Transformers. It operates through the following segments: United States and Canada, International, and Entertainment and Licensing.
The United States and Canada segment refers to the marketing and sale of products in the United States and Canada which include the innovation and reinvention of toys and games. The International segment engages in the marketing and sale of product categories to retailers and wholesalers in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where there is no direct presence.
The Entertainment and Licensing segment conducts movie, television and digital gaming entertainment operations, including the operations of Hasbro Studios and Backflip as well as engages in the out-licensing of trademarks, characters and other brand and intellectual property rights to third parties for digital gaming and consumer products.
The company was founded by Henry Hassenfeld and Hilal Hassenfeld in 1923 and is headquartered in Pawtucket, RI. – CNN Money