Hasbro Inc. (NASDAQ: HAS), reported mixed third-quarter earnings Tuesday morning as inflation continues to affect its consumers. Additionally, the company continues to deal with an oversupply of inventory amid previous supply chain disruptions.
The multinational toy maker reported earnings of USD1.42 per share, compared to the expected USD1.52 a share. Meanwhile, revenue amounted to USD1.69 Billion, on track with analysts’ predictions. Revenue for the period has fallen 15% compared to the previous year, following a 35% fall in entertainment revenue.
“As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer,” said Chris Cocks, Hasbro chief executive officer. “To achieve our full-year outlook, we are projecting Hasbro’s fourth quarter revenue to be approximately flat versus last year on a constant currency basis with particular strength from our Wizards and Digital Gaming segment. Growth will be driven by what we expect to be one of the biggest fourth quarters for MAGIC: THE GATHERING as we kick off the brand’s 30th anniversary and celebrate Hasbro’s first ever $1 billion brand.”
Amid a surge in prices for goods and supplies, the company has been forced to raise prices for items such as Nerf Blasters and My Little Pony figures. The company now expects flat results within its fourth quarter.
As the holiday season approaches, Hasbro revealed plans to “sell through inventory” within the fourth quarter as it aims to focus on less, but bigger brands and more licensing.