|
Shares of the company fell nearly 8 percent to $76.01 before the
bell and were set to open at their lowest since December 2016
after the company blamed the liquidation of its biggest retail
customer and unsold inventory for the drop in revenue.
Hasbro had warned in February that much of the Toys 'R' Us
impact would be felt in the first two quarters of the year and
peer Mattel <MAT.O> added to the sense of crisis in the sector
by appointing its fourth chief executive in three years last
week.
The toy industry's traditional players have been undone in
recent years by a shift toward thousands of rival, smaller
producers selling on Amazon and other e-commerce sites as well
as kids picking electronic games over physical toys.
Mattel, which reports on the first quarter on Thursday, also saw
its shares drop another 5 percent after the Hasbro results.
"We are working to put the near-term disruption from Toys'R' Us
behind us," Hasbro Chief Executive Officer Brian Goldner said.
"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."
Net revenue in Europe, a region where Hasbro struggled to clear
excess inventory and suffered due to the liquidation of the UK
Toys 'R' Us operation, fell 28 percent.
Excluding certain items, Hasbro earned 10 cents per share,
compared to analysts' estimate of 33 cents per share, according
to Thomson Reuters I/B/E/S, its first miss in at least two
years.
The net loss attributable to the company was $112.5 million, or
90 cents per share, in the first quarter ended April 1, compared
with a profit of $68.6 million, or 54 cents per share, a year
earlier.
The company's revenue fell 16 percent to $716.3 million, missing
analyst's estimate of $814 million.
(Reporting by Aishwarya Venugopal and Nivedita Balu in Bengaluru;
Editing by Anil D'Silva and Patrick Graham)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
