Hasbro Inc. (NASDAQ: HAS) on Monday reported first quarter revenue and earnings that missed analysts’ expectation as the company’s business was hurt by the bankruptcy of Toys ‘R’ Us.
The Toymaker net revenue decreased 16 percent to $716.3 million in the first quarter 2018, compared with $849.7 million a year earlier. Analysts polled by Thomson Reuters had estimated revenue of $814 million.
The company also posted net loss of $112.5 million, or $0.90 per share, in the quarter ended April 1. Excluding certain items, the company earned 10 cents per share, missing analysts’ expectation of 33 cents per share.
The company said the disappointing results is the result of the liquidation of Toys“R”Us in the U.S. and U.K., along with uncertainty in its other operations, as well as retail inventory overhang.
“The Hasbro teams executed extremely well during a challenging first quarter,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “Hasbro brands are resonating with consumers and consumer takeaway is positive. However, as we discussed earlier in the year, our first quarter was expected to be difficult. We are working to put the near-term disruption from Toys“R”Us behind us. Our global retailers view this as an opportunity in a key consumer category and are partnering with Hasbro to develop growth plans for our brands. New Hasbroinitiatives shipping in this quarter and beyond won’t be caught up in the Toys“R”Us liquidation process.”