Categories AlphaGraphs, Earnings, Retail, U.S. Markets News

Hasbro’s Jenga tower gets toppled by Toys R Us, shares fall

Hasbro Inc. (HAS) reported a 16% decline in revenues to $716.3 million for the first quarter of 2018, due to the liquidation of Toys R Us in the US and UK and the retail inventory overhang in Europe.

The company posted a net loss for the quarter, on a reported basis, of $112.5 million or $0.90 per diluted share compared to a profit in the prior-year quarter. The net loss reflects expenses associated with Toys R Us, Hasbro’s ongoing commercial organization transformation, and the U.S. tax reform.

Excluding these expenses, earnings came in at $12.4 million or $0.10 per diluted share on an adjusted basis.

Both revenues and adjusted EPS missed analyst expectations. Shares fell during premarket trading.

Hasbro Q1 2018 Earnings

US and Canada segment revenues slid 19% to $364.3 million while International segment revenues lowered to $287.9 million from $345.3 million last year. Revenues in Europe dropped 28% while in Latin America and the Asia Pacific, revenues increased 2% and 3% respectively. Emerging markets revenue fell 5%.

Entertainment and Licensing segment revenues grew 21% versus last year driven by consumer products and digital gaming.

Revenues across all brand portfolios were negatively impacted in the quarter by the Toys R Us liquidation and the retail inventory overhang in Europe.

Franchise Brand revenues fell 19% while Hasbro Gaming revenue declined 22%. Both Emerging Brands and Partner Brands revenues dropped 6% during Q1 2018 compared to the prior-year quarter. Hasbro’s total gaming category fell 20%. Growth in brands such as Monopoly, Marvel, Dungeons and Dragons, Jenga and Littlest Pet Shop were all offset by declines in other brands.

Hasbro expects challenges to continue in 2018 but remains optimistic about achieving growth by 2019.

Most Popular

Important takeaways from Conagra Brands’ Q4 2025 report

Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported weaker-than-expected sales and adjusted earnings for its fourth quarter, reflecting ongoing economic uncertainty and muted consumer spending.

Delta Air Lines (DAL) gains on strong Q2 2025 performance

Shares of Delta Air Lines (NYSE: DAL) rose 12% on Thursday after the company delivered strong results for the second quarter of 2025 and restored its guidance for the full

CAG Earnings: Conagra Brands Q4 adj. profit drops, misses estimates

Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported lower sales and adjusted earnings for the fourth quarter of 2025. Results missed analysts' estimates. Net sales

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top