After a nightmare 2018 for the toy industry, seeing the biggest high street retailer Toys ‘r’ Us go to the wall, it’s hardly surprising that profits have been affected across the board. Toyworld Mag look into the effect it’s had on Hasbro, decreasing the value of their shares by 9%.
The company said it was more negatively impacted by the liquidation and closure of Toys R Us than it had forecast.
Shares of toy maker Hasbro have decreased more than 9% before the opening bell Friday.
Hasbro’s net revenues for the full-year 2018 decreased 12% to $4.58b versus $5.21b in 2017. The lower revenues reflect lost Toys R Us revenues throughout 2018 in the US, Europe and Asia Pacific, as well as a more meaningful impact than expected from the liquidation of Toys R Us inventory into these markets.
In addition, revenues declined internationally, most notably in Europe where the company addressed changing consumer shopping behaviours, a rapidly evolving retail landscape and reduced retail inventory, amidst challenging economies in key markets notably the UK. 2018 net revenues also include an unfavourable $43m impact from foreign exchange.
