Hasbro Inc have reported worse than expected results for the first quarter, laying blame on the bankruptcy of Toys ‘R’ Us for a slide in both revenues and profits, whilst continuing to play down seemingly obvious structural issues that continue to see product not available in retail.
Shares of the company slumped by almost 8 percent on the news.
First quarter revenue was nearly $100 million below forecast, whilst debt has risen to $1.8 billion. The net loss for the quarter was $112.5 million, or 90 cents per share, compared with a profit of $68.6 million, or 54 cents per share, a year earlier.
Sales were down 19% overall, which directly matches the 19% drop in sales of franchise brands, this during the release of the phenomenally successful Black Panther.
Hasbro said Monday it will rely more on online sales, although it has also been working on getting its toys into more stores. CEO Brian Goldner said major retailers plan to increase their toy sections to lure former Toys R Us shoppers, which could benefit the toy maker. But, he added, it could take a year before the company sees sales rise again.
“In addition to the Toys ‘R’ Us impact, we entered the year with work to do to clear through carry-forward inventory, in particular, in Europe,” said Hasbro Chief Executive Brian Goldner. The company is “accelerating” its organizational transformation with “much of this impact” in Europe, he said.