Toymaker Hasbro reported a bigger-than-expected fall in quarterly revenue on Friday, as it struggled with lost sales from the collapse of retailer Toys “R” Us and weak demand in the UK, sending its shares down 9 percent.
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“We were not … able to recapture as much of the Toys “R” Us business during the holiday period as we anticipated as the effect of its liquidated inventory in the market was more impactful than we and industry experts expected,” Chief Executive Officer Brian Goldner said.
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Rival Mattel also reported a steeper-than-expected fall gross sales in North America on Thursday, but its revamped line of Barbie dolls boosted overall sales.
Hasbro’s net revenue fell to $1.39 billion in the fourth quarter ended Dec. 30 from $1.6 billion a year earlier, while analysts were expecting $1.52 billion, according to IBES data from Refinitiv.
The company reported net income of $8.8 million, or 7 cents per share, compared with a loss of $5.3 million, or 4 cents per share, a year earlier, when it took a one-time charge related to changes in U.S. tax laws.
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Excluding certain items, the company earned $1.33 per share, below the average analyst estimate of $1.67 per share.
(Reporting by Uday Sampath in Bengaluru Editing by Saumyadeb Chakrabarty)
