HASBRO's Performance in the First Quarter Fell! Impacted by the Toys 'R' Us?
Toys 'R' Us announced the closure of 700 stores in U.S., leaving HASBRO, MATTEL (Mattel) and other toy manufacturers losing important display sites.
US toy maker HASBRO (Hasbro) released its first quarter results on Monday: the company was seriously impacted by the bankrupt of Toys 'R' Us, as well as the dropping of the company's unsold stock in Europe from $849 million a year ago to $716 million, a sharp drop of more than $100 million, a 15.7% decline in the European market revenue. The sharp decrease was 28%. HASBRO shares fell nearly 4% on Monday to $79.50 at the US stock market.
HASBRO has warned in February that the impact of the Toys 'R' Us bankruptcy will mainly be reflected in the first two quarters of this year. Toys 'R' Us announced the closure of 700 franchise stores in U.S., leaving HASBRO, MATTEL (Mattel) and other toy manufacturers losing important display sites.
HASBRO lost 113 million US dollars in the first quarter or 90 cents per share; in the same period last year, it had a net profit of $68 million 600 thousand, or a surplus of 54 cents per share. After deducting a one-time project, HASBRO adjusted its profit in the first quarter to 10 cents per share, less than 33 cents, i.e. 1/3 of market expectations.
HASBRO CEO Brian Goldner said the company is trying to get out of the impact of the Toys ‘R’ Us, which our global retailers regard as an opportunity and are going to work with HASBRO to develop a growth plan.
Big players in the game industry have been in low tide in recent years, mainly because consumers are gradually buying toys from small manufacturers on Amazon and other e-commerce platforms, and children are attracted by video games and are less interested in traditional toys.
HASBRO's rival MATTEL is expected to announce its quarterly results on Thursday. The company announced last week that CEO Margo Georgiadis was stepping down. According to the report of ctoy-gdta, MATTEL will nominate the fifth CEO for the past six years at the end of this month. From which, we can see its operational difficulties.